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:

Spear Phishing

A targeted type of social engineering in which the attackers know some information about someone that lulls them into thinking an email or other electronic message is safe.

Legitimate Source

A trusted and credible origin or provider of information, goods, or services, often verified through established reputation or credentials.

Personal Information

Any information related to an identifiable individual, including names, addresses, phone numbers, and email addresses.

Ransomware

A security situation in which a hacker has restricted access to a device until the user is pressured to pay money to regain access.