Which of the Following Factors Most Likely Would Lead a CPA

question 43

Multiple Choice

Which of the following factors most likely would lead a CPA to conclude that a potential audit engagement should not be accepted?

• A) There are significant related party transactions that management claims occurred in the ordinary course of business.
• B) Internal control activities requiring the segregation of duties are subject to management override.
• C) Management continues to employ an inefficient system of information technology to record financial transactions.
• D) It is unlikely that sufficient evidence is available to support an opinion on the financial statements.

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Definitions:

Self-blame

The act of attributing personal failures or mishaps to one's own decisions or characteristics.

Negative Thinking

A pattern of focusing on the worst in everything, anticipating failure or disaster, and seeing the negative aspects of all situations.

Test Beliefs

A concept referring to the assumptions and expectations people hold about their ability to perform well on exams or in testing situations.

Cognitive-behavioral Therapist

A mental health professional specializing in cognitive-behavioral therapy, focusing on changing negative thought patterns and behaviors.