Which of the following situations is most likely to be the subject of a written interim report to the engagement client?
a) Open burning at a subsidiary plant poses a prospective violation of pollution regulations.
b) Seventy percent of the planned audit work has been completed with no significant adverse observations.
c) One of the employees has suggested to the auditor a process change that could decrease processing time by five percent.
d) The engagement program has been expanded because of indications of possible fraud.
Ans: a) Open burning at a subsidiary plant poses a prospective violation of pollution regulations.
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