Which of the Following Auditor Concerns Most Likely Could Be

question 49

Multiple Choice

Which of the following auditor concerns most likely could be so serious that the auditor would conclude that a financial statement audit cannot be conducted?

• A)The entity has no formal written code of conduct.
• B)The integrity of entity's management is suspect.
• C)Procedures requiring separation of duties are subject to management override.
• D)Management fails to modify prescribed controls for changes in conditions.

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Definitions:

Aversion

A strong feeling of dislike or disinclination towards something, often used in psychology to refer to a conditioned response to certain stimuli.

Rapid Conditioning

A process by which an organism quickly learns to associate a specific behavior with a particular outcome.

CS (Conditioned Stimulus)

In classical conditioning, a previously neutral stimulus that, after being associated with an unconditioned stimulus, elicits a conditioned response.

Extinction

In psychology, extinction refers to the gradual weakening and eventual disappearance of a conditioned response when the reinforcement or stimulus is no longer presented.