A common comparison occurs when the auditor calculates the expected balance and compared it with the actual balance. The auditor's expected account balance may be determined by:
A) inquiry of client.
B) using industry standards.
C) relating it to some other balance sheet or income statement account or accounts.
D) using ABS data.

Question

Quizplus · Accepted Answer

The auditor's expected account balance can be determined by relating it to some other balance sheet or income statement account or accounts. This helps to ensure that the account balance is reasonable and in line with the overall financial statements. Inquiring with the client or using industry standards may provide some additional information, but relating it to other accounts is the most effective method. Using ABS data may not be relevant or applicable in all cases.

A Common Comparison Occurs When the Auditor Calculates the Expected