When Are Auditors Likely to Encounter Judgment Problems in the Use

Multiple Choice

When are auditors likely to encounter judgment problems in the use of analytical procedures?

A) Whenever the auditor places reliance on management's explanations for unusual fluctuations in account balances without first developing independent expectations
B) Whenever the auditor allows unaudited balances to unduly influence his/her expectations of current balances
C) Whenever the auditor fails to consider the pattern reflected by several unusual fluctuations when trying to explain what caused them
D) The auditor is likely to encounter judgment problems in each of the above instances.