Please answer Which of the following factors most likely would cause an auditor not to accept a new auditengagement?1. An inadequate understanding of the entity's internal controls.2. The close proximity to the end of the entity's fiscal year.3. Concluding that the entity's management probably lacks integrity.4. The inability to perform preliminary analytical procedures before assessing control risk.

Answered: Which of the following factors most…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Concept explainers

Question

Please answer

Which of the following factors most likely would cause an auditor not to accept a new audit
engagement?
1. An inadequate understanding of the entity's internal controls.
2. The close proximity to the end of the entity's fiscal year.
3. Concluding that the entity's management probably lacks integrity.
4. The inability to perform preliminary analytical procedures before assessing control risk.

Expert Solution

Step 1

Internal Controls:

Internal controls are the principles, procedures and rules applied by a company to maintain the quality, accuracy and integrity of the financial information. Internal controls are primarily implemented with the purpose of safeguarding the organization, its assets and achieve its objectives.

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions