Which of the Following Factors Most Likely Would Lead a CPA

question 858

Multiple Choice

Which of the following factors most likely would lead a CPA to conclude that a potential audit engagement should not be accepted?

• A) There are significant related party transactions that management claims occurred in the ordinary course of business.
• B) Internal control activities requiring the segregation of duties are subject to management override.
• C) Management continues to employ an inefficient system of information technology to record financial transactions.
• D) It is unlikely that sufficient appropriate audit evidence is available to support an opinion on the financial statements.

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Definitions:

Valuable Contacts

Individuals or organizations that are important or beneficial to a person's or company's network, often enhancing business opportunities or career prospects.

Sales Presentation

A detailed demonstration or pitch aimed at persuading an audience to purchase a product or service, emphasizing its advantages and features.

Influence

The ability to impact the personality, growth, or actions of an individual or an entity, or the impact that is created.

Customer

An individual or entity that purchases goods or services from a business.