The Auditor Determines That Mathews Company Occupies the 3^rd Floor

question 96

Multiple Choice

The auditor determines that Mathews Company occupies the 3^rd floor of an office tower for which it pays no rent.The most likely explanation is:

• A) they got lucky the landlord hasn't noticed the lack of payments.
• B) landlord has weak internal controls over billings.
• C) a related party transaction in which a major shareholder owns the office tower.
• D) Matthews Company is engaging in fraudulent activities.

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Definitions:

Employees

Persons hired to perform services for a company or organization under an agreement of employment.

Information Technology Systems

These are organized systems comprising hardware, software, databases, networks, and other technology components that support and enable the processing and distribution of data.

Corporate Data

Information that is created, stored, and used by organizations, including financial records, customer data, and operational insights.

Technology Acceptance

Extent to which users intend to or actually use technology as a regular part of their job.