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.

---

Definitions:

Justify Cheating

The process of providing reasons or arguments to defend or rationalize dishonest behaviors, such as cheating.

Narrative Analyses

The method of examining and interpreting the structure and elements of stories and narratives to understand deeper meanings and implications.

Statistical Analyses

The process of collecting, examining, interpreting, and presenting quantitative data to discover underlying patterns and trends.

Scientific Investigation

A systematic process that involves the observation, experimentation, and analysis to acquire knowledge about the natural world.