When applying analytical procedures during an audit, which of the following is the best approach for developing and evaluating expectations?
a. Considering unaudited account balances and ratios to calculate what adjusted balances should be.
b. Identifying reasonable explanations for unexpected differences before talking to client management.
c. Considering the pattern of several unusual changes without trying to explain what caused them.
d. Comparing client data with client-determined expected results to reduce detailed test of account balances.
Answer: B
CPA Exam
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