Which of the Following Would the Auditor Be Most Concerned

question 36

Multiple Choice

Which of the following would the auditor be most concerned about regarding a heightened risk of intentional misstatement?

• A) senior management emphasizes that it is very important to beat analyst estimates of earnings every reporting period
• B) senior management emphasizes that budgeted amounts for expenses are to be achieved for each reporting period or explained in the variance analysis report
• C) senior management emphasizes that job rotation is a worthwhile corporate objective
• D) senior management emphasizes that job evaluations are based on performance

---

Definitions:

Macroeconomics

A branch of economics dealing with the structure, performance, behavior, and decision-making of an economy as a whole, rather than individual markets.

Nation's Economy

The overall economic system of a country, including its production, consumption, and trade of goods and services.

Wage Inequality

The disparity in income distribution among workers, often due to differences in occupation, education, and experience.

Microeconomics

The area of economics focused on analyzing how firms and individuals decide to distribute scarce resources.