The Failure of Many Auditing Firms to Raise Red Flags

question 40

Multiple Choice

The failure of many auditing firms to raise red flags about accounting irregularities in companies such as Enron and WorldCom is generally attributed to all the following factors except the

• A) desire to get future auditing contracts from the company.
• B) desire to get consulting work from the company because most audit firms also do consulting work.
• C) fact that auditors are appointed by the firm.
• D) failure of U.S. audit firms to hire technically qualified professionals.

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Definitions:

Data Integrity

When the data in a database is accurate and reliable.

Security

Measures and protocols that are implemented to protect information, computer systems, networks, and data from unauthorized access, attacks, or damage.

Connectionless Protocol

A protocol that a host computer can use to send data over the network without establishing a direct connection with any specific recipient computer.

Protocol

A set of rules or standards designed to enable computers to connect and transmit data across networks.