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NEW QUESTION: 1
Bank cut-off statements should be requested for 10-15 days after the closing date of the balance sheet.
A. True
B. False
Answer: A

NEW QUESTION: 2

A. Option A
B. Option B
Answer: B

NEW QUESTION: 3
Which of the following auditor concerns most likely could be so serious that the auditor concludes that a
financial statement audit cannot be conducted?
A. Management fails to modify prescribed controls for changes in conditions.
B. The integrity of the entity's management is suspect.
C. Procedures requiring segregation of duties are subject to management override.
D. The entity has no formal written code of conduct.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
Choice "B" is correct. An auditor's faith in the integrity of management is of the utmost importance in
performing a financial statement audit. When an auditor is concerned that the integrity of management is
suspect, the situation is serious enough to prevent the auditor from performing the audit.
Choice "A" is incorrect. A lack of a written code of conduct is not unusual in a small company and certainly
would not prevent an audit from being performed.
Choice "C" is incorrect. Procedures requiring segregation of duties are almost always subject to
management override, even in the best internal control system.
Choice "D" is incorrect. An auditor would simply modify the appropriate audit procedures when
management fails to modify prescribed controls for changes in conditions.