Which of the Following Could Cause an Auditor to Refuse

question 54

Multiple Choice

Which of the following could cause an auditor to refuse to submit a proposal for a prospective audit client:

• A) a senior sales V.P.'s 10 year-old conviction for tax evasion.
• B) a board of directors comprised of management's close friends.
• C) a reputation for high employee turnover.
• D) None of the above.

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Definitions:

Cause-and-effect

Cause-and-effect is a relationship where one event (the cause) makes another event happen (the effect), often used to explain why things happen.

Trends

Repeatable patterns taking place over time.

Numeric Data

Information that is represented in numbers, often used for statistical analysis or calculations.

Mean Average

A statistical measure calculated by dividing the sum of values in a data set by the number of values.