The following questions deal with analytical proce¬ dures. Choose the best response.

a. Significant unexpected fluctuations identified by analyti¬ cal procedures will usually necessitate a(n)

(1) consistency qualification.

(2) understanding of the client's internal controls, 3. explanation in the representation letter, 4. auditor investigation

b. Which of the following situations has the best chance of being detected when a public accountant compares rev- enues and expenses with the prior year and investigates all changes exceeding a fixed percentage?

(1) The company changed its capitalization policy for small tools in the current year.

(2) An increase in property tax rates has not been recog- nized in the company's current accrual.

(3) The cashier began lapping accounts receivable in the current year.

(4) Because of worsening economic conditions, the current provision for uncollectible accounts was inadequate.