Current Attempt in Progress

In reviewing the monthly sales activity for the year, the auditor noted significant and unusual fluctuations from month to month. When queried, management responded that because of supply chain problems and resultant production issues, sales had not followed normal patterns but were all accounted for properly. What should the auditor's response be$?$

Perform additional audit procedures to corroborate management's response.

Increase the risk of material misstatement due to fraud and incorporate additional fraud procedures into the engagement.

Reject management's explanation and withdraw from the engagement.

Document management's explanation and sign off on sales.

Attempts: $0$ of $2$ used

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