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

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 approach is better than using ABS data or industry standards as they do not take into account the specific circumstances and operations of the client. Inquiry of client can also be used as a method to determine expected balance, but it may not always provide reliable information.

A Common Comparison Occurs When the Auditor Calculates the Expected