he characteristic that is least likely to cause concern is that management
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Certain management characteristics may heighten the auditor’s concern about the risk of material misstatements. The characteristic that is least likely to cause concern is that management
a. Operating and financing decisions are made by numerous individuals
b. Commits to unduly aggressive forecasts
c. Has an excessive interest in increasing the entity’s stock price through use of unduly aggressive accounting practices
d. In interested in inappropriate methods of minimizing earnings for tax purposes
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