Significant unexpected fluctuations identified by analytical procedures will necessitate a(n): Select one: a. Auditor investigation. b....

Significant unexpected fluctuations identified by analytical procedures will necessitate a(n):

Select one:

a. Auditor investigation.

b. Explanation in the representation letter.

c. Review of internal control.

d. Qualified opinion.

Expert Solution

The correct answer for the question is Option A - Auditor Investigation. Analytical procedures are procedures under which the auditor builds plausible relationship for an account or class of accounts based on the financial and non-financial data. The auditor compares the expected balances with the actual balances in order to understand if the account is within the ranges acceptable by the auditor. If there are any unexpected fluctuations, the auditor will perform a further investigation to understand the nature and cause of the variance and if there should be changes in the planned audit procedures based on the observations.

Option B is incorrect. A significant unexpected fluctuation would not require an explanation in the represent letter as such. An auditor would perform client inquiries with respect to the fluctuation but would not require any mention of it in the representation letter if the auditor is satisfied with the client's explanations as such.

Option C is incorrect. A review of internal control is not required for a significant unexpected fluctuation identified by the auditor. The immediate step after identifying such unexpected fluctuations would be to investigate the matter further.

Option D is incorrect. An immediate step after finding the significant unexpected fluctuation would not be to issue a Qualified opinion. The auditor has to first investigate the matter. Hence, this option is incorrect.

ekkarill92 answered 2 years ago

Preliminary analytical procedures are performed as part of the planning process to assist the auditor in...

Preliminary analytical procedures are performed as part of the planning process to assist the auditor in gaining an understanding of the entity and its environment (ASA 315 ‘Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and its Environment’). Required: From the three rows of data shown below for Georgie Manufacturing Pty Ltd: (a) what conclusions would you draw from the ratio analysis (i.e. interpret any movement in the ratio and discuss the audit risks that could...

2. Answer these short questions below. a. How might the auditor effectively use preliminary analytical procedures...

2. Answer these short questions below. a. How might the auditor effectively use preliminary analytical procedures in the audit of various expense accounts, such as miscellaneous expenses? Give an example of how analytical procedures used in the audit of such accounts. b. Explain why examining a sample of cash disbursements made after the end of the year is useful in determining the completeness of accounts payable. c. The auditor often examines some expense accounts, such as legal expenses, in detail...

Psych Study Guide Questions A(n) _______________ is a persistent, unwanted thought. Select one: a. obsession b....

Psych Study Guide Questions A(n) _______________ is a persistent, unwanted thought. Select one: a. obsession b. compulsion c. hallucination d. delusion 13. Match each method or concept with the therapy associated with it: (behavioral, Existential, Humanistic, or Cognitive Therapy) a. systematic desensitization b. facing the fear of death c. reappraisal of thoughts d. exposure to feared situation e. unconditional positive regard f. avoidance of “catastrophizing” 14. Which of the following symptoms of schizophrenia would NOT be relieved by antipsychotic drugs?...

In the practice, the sample method selection which is used by auditor is: Select one: a....

In the practice, the sample method selection which is used by auditor is: Select one: a. Simple random selection b. Block sample c. Systematic sample d. Probability sample

Which one of these is the most significant source of cyberrisk?Select one:a. An...

Which one of these is the most significant source of cyber risk?Select one:a. An organization's technology and information-systems environment.b. An organization's legal environment.c. An organization's operations environment.d. An organization's cognitive environment.

Select one of the analytical models of teamwork & discuss how its implications for healthcare organizations...

Select one of the analytical models of teamwork & discuss how its implications for healthcare organizations (in at least 100 words but no more than 200).

Select one trauma from those identified in your textbook. Research one recent (within the last year)...

Select one trauma from those identified in your textbook. Research one recent (within the last year) evidence-based practice article about this trauma and discuss the findings regarding nursing intervention and practice. Identify the source in your post.

4. One of the most significant disadvantages of a monopoly is: a. oligarch capitalization b. no...

4. One of the most significant disadvantages of a monopoly is: a. oligarch capitalization b. no competition from international markets c. price wars d. high prices charged 5. D Ram prices in the U.S. were _____ in Dec-01 a. close to $1 b. better than those in potato sales c. not comparable to those of Vietnamese markets d. fixed 6. Pressure, rationalization, and opportunity help indicate issues that lead to: a. NYPD law investigation b. forensic dissecting of butterflies c....

26. Select the odd one out Select one: a. Zone control b. Paint strips c. Imbedded...

26. Select the odd one out Select one: a. Zone control b. Paint strips c. Imbedded wire d. dead reckoning 27. An AGV has an average speed of 50 m/min. how much distance it can travel in an hour given that it is working in a factory layout in which it has availability factor of 0.9 and traffic factor of 0.95 Select one: a. 3 km b. 2.5 km c. 3.5 km d. 2 km 28. In which of the...

Select the incorrect statement about ADH. Select one: a. It stimulates reabsorption of water b. It...

Select the incorrect statement about ADH. Select one: a. It stimulates reabsorption of water b. It is not secreted if the body consumes large amounts of water c. It is secreted if the body fluids become hypertonic d. It is produced by the distal tubule e. It is also called vasopressin

Question