Which of the following is not a likely reason why an audit firm does not possess the necessary resources to perform an audit engagement?
A) The client company is very large and has multiple geographic locations.
B) The client company is in a highly regulated industry for which significant industry expertise is required.
C) The client company has a very complex IT system for which significant technical expertise is required.
D) The client company has a decentralized structure for providing management oversight.

Question

Quizplus · Accepted Answer

While a decentralized structure may pose some challenges for the audit firm, it is not a likely reason for the firm to lack the necessary resources to conduct an audit engagement. The other options - multiple geographic locations, highly regulated industry, and complex IT systems - require specialized expertise and resources that the audit firm may not have.

Which of the Following Is Not a Likely Reason Why