Which of the Following Events Occurring in the Year Under

Multiple Choice

Which of the following events occurring in the year under audit would most likely indicate that internal controls utilized in previous years may be inadequate in the year under audit?

A) The entity announced that the internal audit function would be eliminated after the balance sheet date.
B) The audit committee chairperson unexpectedly resigned during the year under audit.
C) The chief financial officer waived approvals on all checks to one vendor to expedite payment.
D) The frequency of accounts payable check runs was changed from biweekly to weekly.