Which of the Following Factors Most Likely Would Influence an Auditor's

question 191

Multiple Choice

Which of the following factors most likely would influence an auditor's determination of the auditability of an entity's financial statements?

• A) The complexity of the accounting system.
• B) The existence of related party transactions.
• C) The adequacy of the accounting records.
• D) The operating effectiveness of control activities.

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Definitions:

Routine

A sequence of actions regularly followed; a fixed program or habitual set of activities.

Familiar Experiences

Events or activities that are recognized from past encounters or knowledge, leading to a sense of comfort or recognition.

Scientific Process

A systematic methodology of exploring, understanding, and validating theories or principles through experiments, observation, and data analysis.

Background Research

The initial phase of investigation that gathers existing information or data on a topic before embarking on new research.