Which of the following factors most likely would influence an auditor's determination of the auditability of an entity's financial statements?

Question

Quizplus · Accepted Answer

Choice "C" is correct. Inadequate financial records may preclude the auditor from obtaining sufficient appropriate audit evidence. Choice "A" is incorrect. The complexity of the client's information system generally would not influence an auditor's determination of auditability, although it might indicate the need for an information technology expert. Choice "B" is incorrect. The existence of related party transactions generally would not influence the auditor's determination of auditability. Choice "D" is incorrect. The operating effectiveness of internal controls is determined long after the decision about auditability is made.

Which of the Following Factors Most Likely Would Influence an Auditor's