During an Audit of Financial Contracts, an Auditor Learns That

question 243

Multiple Choice

During an audit of financial contracts, an auditor learns that a relative has a substantial loan with the organization. The auditor should:

• A) Exclude the relative's information from the audited work and proceed with the audit engagement.
• B) Proceed with the audit engagement but disclose in the engagement final communication that the relative is a customer.
• C) Immediately withdraw from the audit engagement.
• D) Notify management and the chief audit executive (CAE) and have the CAE determine whether the auditor should continue with the audit engagement.

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Definitions:

Novel Stimulus

A new or unfamiliar stimulus that requires an individual to process and potentially adapt to it, often used in psychological studies to measure response or attentiveness.

Consequent

In logic, the latter part of a conditional statement, the outcome or result that follows the condition specified in its antecedent.

Antecedent

In logic and grammar, the preceding statement or element that provides the context for a subsequent statement or element.

Proposition

A statement or assertion that expresses a judgment or opinion, or in logic, the content of an assertion that can be true or false.