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:

Health Care Spending

The total amount of money spent on medical services, medications, and other health-related products and services.

Employer-Provided Benefit

Non-wage compensations provided to employees in addition to their normal salaries or wages, like health insurance, paid vacation, and retirement plans.

Federal Health Care Program

A government-run program that provides medical aid and health services to eligible individuals and families.