The auditor notices, early in the engagement, significant fluctuations in key elements of the company's financial...
The auditor notices, early in the engagement, significant fluctuations in key elements of the company's financial statements. If management is unwilling to provide an acceptable explanation, the auditor should
Group of answer choices
Withdraw from the engagement
Perform additional audit procedures to investigate the matter further
Consider the matter a scope limitation
Intensify the examination with the expectation of detecting management fraud.
Homework Answers
Answer is option B. He should perform additional procedure to investigate the matter further so that the real cause of fluctuations can be identified and after future actions will be based on what is the real cause.
There is no need to withdraw from the engagement , overall its the job of auditor to find fluctuations.
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The auditor notices, early in the engagement, significant
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