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Which of the following situations would lead a CPA to conclude that a potential audit engagement should not be accepted? Multiple Choice There are significant

Which of the following situations would lead a CPA to conclude that a potential audit engagement should not be accepted?

Multiple Choice

  • There are significant related party transactions that management claims occurred in the ordinary course of business.
  • Internal control activities requiring the segregation of duties are subject to management override.
  • Management continues to employ an inefficient system of information technology to record financial transactions.
  • It is unlikely that sufficient evidence is available to support an opinion on the financial statements.

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