Choice "D" is correct. An account that doesn't change much from year to year is reasonably predictable with respect to amount, relative significance, and composition, making it a prime candidate for interim testing.
Choice "c" is incorrect. An account that will be tested at interim should be reasonably predictable with respect to amount, relative significance, and composition.
Choice "b" is incorrect. Given a high level of both inherent risk and control risk, the auditor would need to reduce detection risk. Performing tests at interim would increase detection risk.
Choice "a" is incorrect. An account that will be tested at interim should be reasonably predictable with respect to amount, relative significance, and composition. Accounts that fluctuate based on management's discretion are generally unpredictable.
