Which of the Following Is NOT a Concern That May

question 101

Multiple Choice

Which of the following is NOT a concern that may arise from an audit firm completing an audit for a substantially reduced fee?

• A) The audit firm is allocating sufficient time and qualified staff to the audit.
• B) A lower quality of auditing
• C) A more efficient audit can be conducted as the audit is completed within a budgeted time frame.
• D) Compliance with applicable standards and quality control procedures

---

Definitions:

Writing Requirement

The writing requirement refers to legal stipulations that certain types of agreements or contracts must be documented in written form to be legally valid.

Drawer

A drawer is a person or entity that issues or writes a check or draft, instructing a bank or similar institution to pay a specific amount of money to a designated party.

Drawee

The party on whom a cheque or draft is drawn, responsible for paying the specified amount on the instrument.

Payee

The party in a financial transaction who receives the payment.