Which of the Following Matters Would an Auditor Most Likely

Multiple Choice

Which of the following matters would an auditor most likely consider to be a significant deficiency in internal control to be communicated to management and those charged with governance?

A) Management's failure to renegotiate unfavorable long-term purchase commitments.
B) Recurring operating losses that may indicate going concern problems.
C) Evidence of a lack of objectivity by those responsible for accounting decisions.
D) Management's current plans to reduce its ownership equity in the entity.