Assume That Application of Analytical Procedures Revealed Significant Unexplained Differences

Multiple Choice

Assume that application of analytical procedures revealed significant unexplained differences between recorded amounts and the expectations (estimates) developed by the auditor. If management is unable to provide an acceptable explanation, the auditor should:

A) consider the matter a scope limitation.
B) perform additional audit procedures to investigate the matter further.
C) intensify the audit with the expectation of detecting management fraud.
D) withdraw from the engagement.