Which of the Following Is an Example of Circumstances That

question 15

Multiple Choice

Which of the following is an example of circumstances that would not limit the audit scope?

• A)An inadequacy in the accounting records.
• B)The inability to gather sufficient competent evidence.
• C)Emphasis of an important matter.
• D)The timing of the fieldwork.

---

Definitions:

Cash Dividends

Payments made out of a corporation's earnings to its shareholders in the form of cash.

Treasury Stock

Refers to shares that were previously issued and outstanding but have been bought back by the issuing company, reducing the amount of outstanding stock on the open market.

Stock Split

An action by a company to increase the number of its outstanding shares by issuing more shares to current shareholders, often to make the stock more affordable.

Market Value

The current price at which an asset or service can be bought or sold in a marketplace, reflecting supply and demand dynamics.