Whenever a company refuses to allow business professionals to communicate openly with an auditor, the auditor should be concerned about the likelihood that:
A) a RFP was not formalized.
B) information exists that the company wants to withhold.
C) management is centralized.
D) the company is experiencing rapid growth.

Question

Quizplus · Accepted Answer

When a company refuses to allow business professionals to communicate openly with an auditor, it indicates that there may be information that the company wants to withhold. This could be due to fraudulent activities, mismanagement, or other reasons. As a result, the auditor should be concerned and investigate further to ensure that all information is being disclosed and to assess the overall risk of the engagement. The other choices do not provide a logical explanation for why the company would refuse to allow open communication with the auditor.

Whenever a Company Refuses to Allow Business Professionals to Communicate