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NEW QUESTION: 1
Which of the following auditor concerns most likely could be so serious that the auditor concludes that a
financial statement audit cannot be conducted?
A. Procedures requiring segregation of duties are subject to management override.
B. The integrity of the entity's management is suspect.
C. Management fails to modify prescribed controls for changes in conditions.
D. The entity has no formal written code of conduct.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
Choice "B" is correct. An auditor's faith in the integrity of management is of the utmost importance in
performing a financial statement audit. When an auditor is concerned that the integrity of management is
suspect, the situation is serious enough to prevent the auditor from performing the audit.
Choice "A" is incorrect. A lack of a written code of conduct is not unusual in a small company and certainly
would not prevent an audit from being performed.
Choice "C" is incorrect. Procedures requiring segregation of duties are almost always subject to
management override, even in the best internal control system.
Choice "D" is incorrect. An auditor would simply modify the appropriate audit procedures when
management fails to modify prescribed controls for changes in conditions.
NEW QUESTION: 2
What are the services provided by Payment Service Providers?
A. automatic linking of merchant product data to price comparison
services
B. repeatable transactions via secure storage of customer credit card
details
C. traceability across entire transactions
D. transactional authorization of customer payments
Answer: B,D
NEW QUESTION: 3
A. Option B
B. Option C
C. Option A
D. Option D
Answer: C
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