Which of the Following Factors Most Likely Would Cause an Auditor

question 178

Multiple Choice

Which of the following factors most likely would cause an auditor to question the integrity of management?

• A) Management has an aggressive attitude toward financial reporting and meeting profit goals.
• B) Audit tests detect material fraud that was known to management, but not disclosed to the auditor.
• C) Managerial decisions are dominated by one person who is also a stockholder.
• D) Weaknesses in internal control reported to the audit committee are not corrected by management.

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