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Auditors always look at the variances between actual and budget or actual and last year. Say you were auditing this client and they gave you

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Auditors always look at the variances between actual and budget or actual and last year. Say you were auditing this client and they gave you the following story (below). Is the story consistent with the overall pattern of variances? Which elements of the story are con- sistent with the explanations? Which variances are inconsistent, or left unexplained? Be sure to analyze every line item on the budget. (SEE NEXT PAGE.)

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