Which of the following most indicates a situation where an organization would be deemed by the PA to be "not auditable"?
A)As part of an aggressive growth strategy,the company's operations will soon extend to multiple countries.
B)Management's intention is to take the company global within the next three years.
C)Due to what it perceives as unacceptably high legal liability exposure,company management will not commit to providing the auditor with written representations.
D)Because the company's shares are traded on the New York Stock Exchange,its financial statements are prepared according to U.S.GAAP.

Question

Quizplus · Accepted Answer

If management is unwilling to provide the auditor with necessary representations, the auditor would not have sufficient evidence to support their opinions, making the organization not auditable. The other options are not necessarily indicative of a company being deemed "not auditable."

Which of the Following Most Indicates a Situation Where an Organization