Which of the following factors most likely would lead a CPA to conclude that a potential audit engagement should not be accepted?
a. There are significant related-party transactions that management claims occurred in the ordinary course of business.
b. Internal control activities requiring the segregation of duties are subject to management override.
c. Management continues to employ an inefficient system of information technology to record financial transactions.
d. It is unlikely that sufficient appropriate evidence is available to support an opinion on the financial statements.
Answer: D
CPA Exam
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