If the auditor determines that a material misstatement may be due to fraud, the auditor should do all of the following except:
A) Attempt to obtain evidence to determine whether the misstatement was, in fact, due to fraud.
B) Discuss the findings with an appropriate level of management.
C) Alert the authorities.
D) Suggest that management consult with legal counsel.
Answer: C) Alert the authorities.
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A(n) ________ is a network of organizations and facilities that transforms raw materials into products delivered to customers.
A) organizational hierarchy B) flat organization C) organizational architecture D) supply chain
An adjusted trial balance
a. is prepared after the financial statements are completed. b. proves the equality of the total debit balances and total credit balances of ledger accounts after all adjustments have been made. c. is a required financial statement under generally accepted accounting principles. d. cannot be used to prepare financial statements.