Which of the Following Will Be an Appropriate Course of Action

question 147

Multiple Choice

Which of the following will be an appropriate course of action when an auditor disagrees with a client about a well-documented audit finding?

• A) Include both the audit finding and the client's position in the audit report.
• B) Defer reporting the item and plan to perform more detailed work during the next audit.
• C) Change the finding so that it is acceptable to the client.
• D) Address the issue with senior management and the board for resolution prior to issuing the final report.

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Definitions:

Pure Competition

A market structure characterized by a large number of small firms, a homogeneous product, and free entry and exit which leads to price taking behavior.

Barriers To Entry

Elements that obstruct or impede the ability of businesses to penetrate a particular market or sector.

Elasticity Coefficient

The elasticity coefficient measures how much the quantity demanded or supplied of a good responds to a change in one of its determinants, such as price, income, or the price of related goods.

Perfectly Elastic

Describes a market situation where demand or supply can change infinitely with even the slightest change in price.