An Auditor Might Suspect That the Auditee Is in Financial

question 24

Multiple Choice

An auditor might suspect that the auditee is in financial difficulty if ________.

• A) the auditee offers more generous customer credit terms
• B) the auditee takes a large bank loan at market rates
• C) sales increase and inventory increases
• D) purchases increase and payables increase

---

Definitions:

Mass Media

Various platforms and technologies used for disseminating information and entertainment to large audiences, including newspapers, television, radio, and the internet.

Teenage Violence

Aggressive or violent behaviors exhibited by adolescents, often resulting from various social, emotional, or familial pressures.

CBS/New York Times Poll

A public opinion poll conducted by CBS News and The New York Times, aimed at gauging public sentiment on various political, social, and economic issues.

Conformity

The act of aligning one's beliefs, attitudes, and behaviors with societal norms or group standards.