An independent auditor has concluded that the client's records, procedures, and representation can be relied upon based on tests made during the year when internal control was found to be effective. The auditor should test the records, procedures, and representations again at year-end if
a. Inquiries and observations lead the auditor to believe that conditions have changed significantly.
b. Comparisons of year-end balances with balances at prior dates revealed significant fluctuations.
c. Unusual transactions occurred subsequent to the completion of the interim audit work.
d. Client records are in a condition that facilitates effective and efficient testing.
Answer: A
CPA Exam
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