Which of the Following Circumstances Most Likely Would Cause an Auditor

question 851

Multiple Choice

Which of the following circumstances most likely would cause an auditor to consider whether material misstatements exist in an entity's financial statements?

• A) Management places little emphasis on meeting earnings projections. net
• B) The board of directors makes all major financing decisions.
• C) Significant deficiencies in internal control previously communicated to management are not corrected.
• D) Transactions selected for testing are not supported by proper documentation.

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Definitions:

Intentional Discrimination

Purposeful and deliberate unequal treatment of individuals based on certain characteristics such as race, gender, or age.

Canadian Human Rights Commission

A government agency responsible for promoting and enforcing human rights, addressing discrimination, and ensuring equality across Canada.

Discrimination

Unfair treatment of individuals based on characteristics such as race, age, gender, disability, or religion, which is prohibited in many aspects of employment and public life.

Mediation

A form of alternative dispute resolution where a neutral third party helps two or more sides negotiate to resolve a conflict.