Which of the Following Factors Most Likely Would Cause an Auditor

question 41

Multiple Choice

Which of the following factors most likely would cause an auditor to not accept a new audit engagement?

• A)An inadequate understanding of the entity's internal control.
• B)The close proximity to the end of the entity's financial year.
• C)The conclusion that the entity's management probably lacks integrity.
• D)An inability to perform preliminary analytical procedures before assessing control risk.

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Definitions:

Chorionic Villus Sampling

A prenatal test involving the extraction of a small sample of the placental tissue to test for chromosomal abnormalities.

Pedigree

In genetics, a pedigree is a diagram that shows the occurrence and appearance or phenotypes of a particular gene or organism and its ancestors from one generation to the next, often used to study the inheritance of specific traits.

Short Run

A period in economics during which some factors of production are fixed, limiting the ability of a business to expand or change its output levels.

Industry

A group of companies that produce similar goods or services, engaged in the same type of business.