If Management Makes Appropriate Adjustments,but Does Not Take Appropriate Steps

question 45

Multiple Choice

If management makes appropriate adjustments,but does not take appropriate steps to modify internal control in order to rectify the problem of fraud discovered in a financial statement audit,the decision has a direct impact on:

• A)the audit opinion on the financial statements.
• B)the client company's stock price.
• C)the auditor's perception of the overall control environment.
• D)all previous work performed by the auditor for competing companies.

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Definitions:

Character Strengths

Positive personality traits or qualities that are considered to be morally beneficial and contribute to individual fulfillment.

Behavior Geneticist

A scientist who studies the role of genetics in the behavior of individuals, often through twin studies, family studies, and other genetic methodologies.

Genetics

The study of genes, genetic variation, and heredity in living organisms, explaining how traits are passed from parents to offspring.

Environment

The habitat or situational conditions that influence the living or operational state of a person, animal, or plant.