Which of the Following Is Least Likely to Warrant Further

question 33

Multiple Choice

Which of the following is least likely to warrant further investigation of a potential client company?

• A) Several companies in the same industry are experiencing business failures.
• B) None of the audit committee members is a financial expert.
• C) The audit committee concurs with management's selection of accounting treatments.
• D) One of the directors was convicted of tax evasion.

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Definitions:

Cash Payments

Outflows of cash by a business to settle obligations, such as paying expenses, debts, or purchasing assets.

Payroll Register

A multicolumn report used to assemble and summarize payroll data at the end of each payroll period.

Multicolumn Form

A formatting style used in accounting and bookkeeping that uses multiple columns to represent and organize financial information and transactions.

Unemployment Compensation Tax

A tax paid by employers to fund unemployment benefits for workers who have lost their jobs.