Which of the Following Is Least Likely to Be Considered

question 90

Multiple Choice

Which of the following is least likely to be considered material in an audit of a medium-sized organization?

• A) A $1, 000 overstatement of the accrued-vacation payable account.
• B) A violation of a government statute.
• C) Fraud resulting in a cash loss to the organization.
• D) An underpayment to the employee pension fund.

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Definitions:

Fertilizer

A substance used to enhance the growth of plants and increase yield by supplying essential nutrients.

Bushels

A unit of volume that is used for quantities of dry commodities (such as grains or produce), where the capacity varies according to the commodity.

Profit

The financial gain made in a transaction or operation, calculated as total revenues minus total costs.

Production Function

A mathematical relationship expressing the amount of output generated from different amounts of inputs.