Which of the Following Circumstances Most Likely Would Cause an Auditor

question 887

Multiple Choice

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

• A) The assumptions used in developing the prior year's accounting estimates have changed.
• B) Differences between reconciliations of control accounts and subsidiary records are not investigated.
• C) Negative confirmation requests yield fewer responses than in the prior year's audit.
• D) Management consults with another CPA firm about complex accounting matters.

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Definitions:

Synapses

The junctions through which neurons communicate with other neurons, muscle cells, or glands, using chemical or electrical signals.

Parkinson's Disease

A progressive neurological disorder characterized by tremors, stiffness, and slow movement, caused by the degeneration of dopamine-producing neurons.

Synapses

The junctions between neurons where electrical or chemical signals are transmitted.

Synaptic Cleft

The small gap at the synapse through which neurotransmitters carry neural signals between neurons.