Which of the following matters would an auditor most likely consider to be a significant deficiency to be communicated to the audit committee?
A)Management's failure to renegotiate unfavorable long-term purchase commitments.
B)Recurring operating losses that may indicate going concern problems.
C)Evidence of a lack of objectivity by those responsible for accounting decisions.
D)Management's current plans to reduce its ownership equity in the entity.

Question

Quizplus · Accepted Answer

Evidence of a lack of objectivity by those responsible for accounting decisions is a significant deficiency because it can directly impact the integrity of financial reporting and the effectiveness of the entity's internal control over financial reporting.

Which of the Following Matters Would an Auditor Most Likely