4. Which of the following circumstances most likely would cause an auditor to suspect that there are material misstatements in an entity's financial statements?
(A) Significant difference between the physical inventory count and the accounting records are not investigated.
(B) Management enforces strict budgetary controls over the entity's departmental supervisors.
(C) Cash transactions are electronically processed and recorded, leaving no paper audit trail.
(D) The monthly bank reconciliation ordinarily includes several large outstanding checks.