Final answer:
True, the auditor should inquire about unusual fluctuations discovered during analytical procedures to understand the causes and assess if further audit procedures are necessary.
Step-by-step explanation:
When analytical procedures in the sales and collection cycle uncover unusual fluctuations, the statement that the auditor should make additional inquiries of management is True. Analytical procedures are a key component of the audit process and are used to identify transactions or figures that are not in line with expectations based on an understanding of the client's business and industry. When an auditor encounters unusual or unexpected fluctuations during these procedures, it prompts a closer look to understand the reasons behind these variances.
Following the identification of these fluctuations, the auditor should inquire with management to gain better insight into the reasons for the variations, whether they may indicate a misstatement due to error or fraud, or if they are the result of legitimate circumstances. This is a basic principle of auditing, as communication with management is essential to clarify and interpret the findings. The auditor may also need to perform additional audit procedures based on the outcome of these inquiries.