Which of the Following Matters Would an Auditor Most Likely

question 578

Multiple Choice

Which of the following matters would an auditor most likely consider to be a significant deficiency in internal control to be communicated to management and those charged with governance?

• A) Management's failure to renegotiate unfavorable long-term purchase commitments.
• B) Recurring operating losses that may indicate going concern problems.
• C) Evidence of a lack of objectivity by those responsible for accounting decisions.
• D) Management's current plans to reduce its ownership equity in the entity.

---

Definitions:

Refractory Period

A recovery phase after orgasm during which an individual is unable to achieve another orgasm.

Ejaculation

The release of semen from the male reproductive tract, typically occurring during sexual climax.

Male Breast

Tissue found on the chest of males that can develop similarly to female breasts under certain conditions, though typically less pronounced.

Female Breast

A pair of mammary glands on the chest of women and female mammals, which can produce milk to feed infants.