Which of the Following Is Least Important to the Auditor

question 6

Multiple Choice

Which of the following is least important to the auditor when investigating a potential new audit client?

• A) The audit committee does not have the requisite number of independent members or financial experts.
• B) The company has experienced recent operating losses and other financial difficulties.
• C) The company has a highly decentralized organizational structure.
• D) The company has experienced high turnover rates among management or members of the accounting, internal audit, or IT staff.

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Definitions:

Low-load Mutual Funds

Mutual funds that charge a lower sales load (commission) compared to typical sales charges, making them more cost-effective for investors.

Asset Value

Asset value is the total value of a company's or individual's assets, calculated by summing the market value of all tangible and intangible items.

Net Asset Value

The total value of a fund's assets minus its liabilities, often used in the context of mutual and exchange-traded funds.

Investment Company

A trust or corporation that focuses on deploying the aggregated investments of individuals into financial securities.