Which of the Following Would the Auditor Be Most Concerned

question 92

Multiple Choice

Which of the following would the auditor be most concerned about regarding a heightened risk of intentional misstatement?

• A) Senior management emphasizes that it is very important to beat analyst estimates of earnings every reporting period.
• B) Senior management emphasizes that budgeted amounts for expenses are to be achieved for each reporting period or explained in the variance analysis report.
• C) Senior management emphasizes that job rotation is a worthwhile corporate objective.
• D) Senior management emphasizes that job evaluations are based on performance.

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