The Auditor Determines That Matthews Company Occupies the 3rd Floor

question 50

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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Definitions:

Aggressive Themes

Narrative or symbolic patterns in various forms of representations, emphasizing themes of aggression and conflict.

Tension Build-Up

The accumulation of stress or pressure over time, often leading to emotional or physical distress.

Punch Line

The climax or critical point of a joke or funny story that triggers laughter or amusement.

Aggressive Ways

Methods or approaches characterized by or resulting in harm, hostility, or attack.