Which of the Following Factors Most Likely Would Cause an Auditor

question 178

Multiple Choice

Which of the following factors most likely would cause an auditor to question the integrity of management?

• A) Management has an aggressive attitude toward financial reporting and meeting profit goals.
• B) Audit tests detect material fraud that was known to management, but not disclosed to the auditor.
• C) Managerial decisions are dominated by one person who is also a stockholder.
• D) Weaknesses in internal control reported to the audit committee are not corrected by management.

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Definitions:

Brain Waves

Electrical patterns within the brain that are detectable with an electroencephalogram (EEG) and reflect different levels of brain activity.

Transcranial Magnetic Stimulation

A procedure that doesn't penetrate the skin, employing magnetic fields to activate brain nerve cells to enhance depressive symptoms.

Stereotaxic Plotting

A technique used in neuroscience to precisely position tools within specific areas of the brain using a three-dimensional coordinate system.

Lesioning

a research method involving the deliberate damage or removal of tissue in the brain to study behavioral changes or the function of a particular area.