Which of the Following Circumstances Most Likely Would Cause an Auditor

question 25

Multiple Choice

Which of the following circumstances most likely would cause an auditor to believe that material misstatements may exist in an entity's financial statements?

• A)Accounts receivable confirmation requests yield significantly fewer responses than expected.
• B)Audit trails of computer-generated transactions exist only for a short time.
• C)The chief financial officer does not sign the management representation letter until the last day of the auditor's fieldwork.
• D)Management consults with other accountants about significant accounting matters.

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Definitions:

Total Revenue

the overall income generated by a business from its operations, before any expenses are deducted.

Total Cost

The complete cost of producing or acquiring a product or service, including all direct and indirect expenses.

Meat Lover's

typically refers to dishes or food products that are designed with a variety of meats, catering to those who prefer a meat-heavy diet.

Value

Refers to the importance or usefulness of something or its worth in terms of money, materials, services, or social significance.