Which of the Following Information That Comes to an Auditor's

question 37

Multiple Choice

Which of the following information that comes to an auditor's attention most likely would raise a question about the occurrence of illegal acts?

• A)The exchange of property for similar property in a nonmonetary transaction.
• B)The discovery of unexplained payments made to government employees.
• C)The presence of several difficult-to-audit transactions affecting expense accounts.
• D)The failure to develop adequate procedures that detect unauthorized purchases.

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Definitions:

Capital Formation

The process of building up the physical and financial assets of a country or region for the purpose of increasing its capacity for production.

Economic Growth

An increase in the amount of goods and services produced per head of the population over a period of time.

Human Resources

The department within an organization that is responsible for managing employee-related processes including hiring, training, compliance, and benefits.

Developed Nations

Countries with advanced industrial infrastructure, high living standards, and sophisticated economies.