Which of the following matters would an auditor most likely consider to be a significant deficiency to be communicated to the audit committee?
A. Management's current plans to reduce its ownership equity in the entity.
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 failure to renegotiate unfavorable long-term purchase commitments.
Answer: C
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