Which of the Following Situations Would Lead a CPA to Conclude

question 58

Multiple Choice

Which of the following situations would lead a CPA to conclude that a potential audit engagement should not be accepted?

• A)There are significant related party transactions that management claims occurred in the ordinary course of business.
• B)Internal control activities requiring the segregation of duties are subject to management override.
• C)Management continues to employ an inefficient system of information technology to record financial transactions.
• D)It is unlikely that sufficient evidence is available to support an opinion on the financial statements.