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:

Heritability

A statistical estimate of the proportion of the total variance in some trait that is attributable to genetic differences among individuals within a group.

Identical Twins

Twins who develop from a single fertilized egg that splits and forms two embryos, sharing 100% of their genetic material.

Fraternal Twins

Twins that develop from two different eggs fertilized by two different sperm, making them genetically unique from each other.

Critics

Individuals who evaluate or analyze the merits and faults of artistic, literary, or musical works.