The Audit Client's Board of Directors and Audit Committee Refused

question 48

Multiple Choice

The audit client's board of directors and audit committee refused to take any action with respect to an immaterial illegal act which was brought to their attention by the auditor.Because of their failure to act,the auditor withdrew from the engagement.The auditor's decision to withdraw was primarily due to doubts concerning

• A) Adequate financial statement disclosures.
• B) Compliance with the statutory laws and regulations.
• C) Scope limitations resulting from their inaction.
• D) The integrity of management.

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Definitions:

Truth Tables

A table used in logic to determine the truth value of a compound statement based on the truth values of its components.

Symbolic Form

Representation of logical statements or arguments using symbols and operators to abstract away from the content, focusing on structure.

Components

The individual parts or elements that make up a complex system or device.

Connective

A word or phrase in logic that connects propositions, such as "and", "or", "if...then", serving to create compound statements.