The Auditor Determines That Matthews Company Occupies the 3ʳᵈ Floor

question 3

Multiple Choice

The auditor determines that Matthews Company occupies the 3ʳᵈ floor of an office tower for which it pays no rent.The most likely explanation is

• A)they got lucky the landlord hasn't noticed the lack of payments.
• B)the landlord has weak internal controls over billings.
• C)a related party transaction in which a major shareholder owns the office tower.
• D)Matthews Company is engaging in fraudulent activities.

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