Which of the Following Matters Would an Auditor Most Likely

question 6

Multiple Choice

Which of the following matters would an auditor most likely consider to be a significant deficiency to be communicated to the audit committee?

• A)Management's failure to renegotiate unfavorable long-term purchase commitments.
• B)Recurring operating losses that may indicate going concern problems.
• C)Evidence of a lack of objectivity by those responsible for accounting decisions.
• D)Management's current plans to reduce its ownership equity in the entity.

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