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Which of the following is NOT among the conditions that give rise to a demand by external users for independent audits of financial statements? a. The users of the financial statement do not have a background knowledge about accounting and tax matters   b. There is an issue of agency problem between the management and the stockholders of the company   c. Reliance on unaudited financial information may have adverse economic consequences   d. The users of financial statements cannot directly access the company’s books and records

Which of the following is NOT among the conditions that give rise to a demand by external users for independent audits of financial statements? a. The users of the financial statement do not have a background knowledge about accounting and tax matters   b. There is an issue of agency problem between the management and the stockholders of the company   c. Reliance on unaudited financial information may have adverse economic consequences   d. The users of financial statements cannot directly access the company’s books and records

Auditing: A Risk Based-Approach to Conducting a Quality Audit
Auditing: A Risk Based-Approach to Conducting a Quality Audit
10th Edition
ISBN:9781305080577
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter7: Planning The Audit: Identifying, And Responding To The Risk Of Material Misstatement
Section: Chapter Questions
Problem 20MCQ
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Which of the following is NOT among the conditions that give rise to a demand by external users for independent audits of financial statements?

a. The users of the financial statement do not have a background knowledge about accounting and tax matters
 
b. There is an issue of agency problem between the management and the stockholders of the company
 
c. Reliance on unaudited financial information may have adverse economic consequences
 
d. The users of financial statements cannot directly access the company’s books and records
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