Which of the Following Factors Most Likely Would Lead a CPA

question 26

Multiple Choice

Which of the following factors most likely would lead a CPA to conclude that a potential audit engagement should be rejected?

• A)The details of most recorded transactions are not available after a specified period of time.
• B)Internal control activities requiring segregation of duties are subject to management override.
• C)It is unlikely that sufficient appropriate evidence is available to support an opinion on the financial statements.
• D)Management has a reputation for consulting with several accounting firms about significant accounting issues.

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Definitions:

Naming Species

The process of systematically identifying and classifying organisms into groups based on shared characteristics, following a standard set of rules.

Lumping

The practice in taxonomy of grouping together several previously separate species into one broader category.

Obsidian

A naturally occurring volcanic glass, used by ancient people for making sharp tools and ornaments.

Blades

Thin, flat pieces of metal or other hard materials, sharpened on one edge, used as tools or weapons.