Which of the Following Information Discovered During an Audit Most

question 824

Multiple Choice

Which of the following information discovered during an audit most likely would raise a question concerning possible illegal acts?

• A) Related party transactions, although properly disclosed, were pervasive during the year.
• B) The entity prepared several large checks payable to cash during the year.
• C) Material internal control weaknesses previously reported to management were not corrected.
• D) The entity was a campaign contributor to several local political candidates during the year.

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Definitions:

Theodore Roosevelt

The 26th President of the United States, known for his progressive policies, leadership of the Rough Riders, and contributions to conservation.

Tulsa, Oklahoma

Known for the Tulsa Race Massacre of 1921, where a white mob attacked residents, homes, and businesses in the predominantly African American neighborhood of Greenwood, leading to significant loss of life and property.

Race War

A conflict between racial or ethnic groups characterized by violence and hostility, often fueled by racism, discrimination, and historical grievances.

Elaine, Arkansas

A location in the United States that was the site of a racial conflict known as the Elaine Massacre in 1919.