Which of the Following Matters Would an Auditor Most Likely

question 717

Multiple Choice

Which of the following matters would an auditor most likely communicate to those charged with governance?

• A) A list of negative trends that may lead to working capital deficiencies and adverse financial ratios.
• B) The level of responsibility assumed by management for the preparation of the financial statements.
• C) Difficulties encountered in achieving a satisfactory response rate from the entity's customers in confirming accounts receivables.
• D) The effects of significant accounting policies adopted by management in emerging areas for which there is no authoritative guidance.

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Definitions:

Mainstream Reader

A person who prefers reading popular or widely accepted literature, typically the most common and commercially successful works.

Baby Boomers

A demographic group referring to people born during the post-World War II baby boom approximately between 1946 and 1964.

Largest Population

The highest number of individuals residing within a particular geographic area, city, or country.

Consumer Group Profiling

The practice of categorizing consumers into groups with similar characteristics for marketing purposes.