Which of the Following Factors Most Likely Would Cause an Auditor

question 1

Multiple Choice

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

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

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Definitions:

Protective Tariff

A tax imposed on imported goods to shield domestic industries from foreign competition by making imported goods more expensive.

Import Quota

A government-imposed limit on the quantity or value of goods that can be imported into a country, used to protect domestic industries and manage trade balances.

United States

A country located in North America, comprised of 50 states, known for its significant economic, cultural, and political influence globally.

Switzerland

A landlocked country in Central Europe known for its high standard of living, neutrality, and picturesque landscapes.