Which of the Following Circumstances Would Most Likely Cause an Auditor

question 620

Multiple Choice

Which of the following circumstances would most likely cause an auditor to suspect that material misstatements arising from fraud exist in a client's financial statements?

• A) Property and equipment are usually sold at a loss before being fully depreciated.
• B) Significantly fewer responses to confirmation requests are received than expected.
• C) Monthly bank reconciliations usually include several in-transit items.
• D) Clerical errors are listed on an EDP-generated exception report.

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Definitions:

Outcome Objectives

Specific goals that a project or study aims to achieve, measured through certain indicators or outcomes.

Summative Evaluation

A type of evaluation that judges the effectiveness of a program, project, or instruction at its conclusion, summarizing its impact.

Measurement

The process of obtaining a quantitative representation of traits, quantities, or phenomena to allow for analysis or comparison.

Outcome Objectives

The specific, measurable results or achievements that a program or intervention aims to accomplish.