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.

---

Definitions:

Osteoblast

A type of cell that is responsible for bone formation, secreting the matrix for bone and playing a key role in bone growth and healing.

Endosteum

Membranous lining of the medullary cavity and the cavities of spongy bone.

Periosteum

Bones are encased in a thick connective tissue full of blood vessels, except where the joints are located.

Ruffled Borders

Ruffled borders are specialized structures of osteoclasts involved in bone resorption, where the bone surface is broken down and minerals released.