Question

Analytical procedures reveal significant unexpected differences between recorded amounts and the expectations developed by the auditor....

Analytical procedures reveal significant unexpected differences between recorded amounts

and the expectations 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.

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Answer #1
If management is unable to provide an acceptable explanation, the auditor should Perform additional audit procedures to investigate the matter further.
The auditor should carry out additional audit procedures to obtain sufficient evidence regarding the deviations between the amounts.
The evidences obtained should be sufficient to allow auditor to express an opinion on the matter.
Option B is correct
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