Which of the Following Factors Most Likely Would Lead a CPA

question 43

Multiple Choice

Which of the following factors most likely would lead a CPA to conclude that a potential audit engagement should not be accepted?

• A) There are significant related party transactions that management claims occurred in the ordinary course of business.
• B) Internal control activities requiring the segregation of duties are subject to management override.
• C) Management continues to employ an inefficient system of information technology to record financial transactions.
• D) It is unlikely that sufficient evidence is available to support an opinion on the financial statements.

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Definitions:

Auditory Sensation

The perceptual experience of sound, which occurs when sound waves are converted into electrical signals processed by the brain.

Sensory Registers

The initial processing systems that store sensory information for very short periods of time, allowing it to be perceived.

Temporal Lobe

A region of the brain responsible for processing auditory information and encoding memory.

Sensory Registers

A short-term storage system for sensory information, where such information is held briefly before it's either discarded or processed further.