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# An independent audit found no indication of tax

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RC Moderator
Joined: 24 Aug 2016
Posts: 632
Concentration: Entrepreneurship, Operations
GMAT 1: 630 Q48 V28
GMAT 2: 540 Q49 V16
An independent audit found no indication of tax  [#permalink]

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20 Sep 2018, 07:13
1
1
00:00

Difficulty:

65% (hard)

Question Stats:

53% (01:24) correct 47% (01:58) wrong based on 58 sessions

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"An independent audit found no indication of tax avoidance on the part of the firm in the firm's accounts, therefore no such problem exists.”

The questionable reasoning in the argument above is most closely paralleled by that in which one of the following?

(A) The plan for the introduction of the new product has been unmodified so far; therefore, it will not be modified in the future.
(B) The overall budget for the projects has been exceeded by a large amount; therefore, at least one of the projects has exceeded its budget by large amount.
(C) A compilation of the best student essays of the year includes no essays on current events; therefore, students have become apathetic toward current events.
(D) A survey of schools in the district found no school without a need for building repair; therefore, the education provided to students in this district is substandard.
(E) An examination of the index of the book found no listing for the most prominent critic of the theory the book advocates; therefore, the book fails to refer to that critic.

PS : Credit goes to harvard2019 for bringing this Q up in chat forum... a nice Q. I think the Q should be present in the forum. Although 2 retired threads are there in the GC club. but never found a discussion here. Deferring the OA for 1 day to have a discussion on the Q. Thanks again harvard2019.
Mods please let me know if there are any issues.

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Please let me know if I am going in wrong direction.
Thanks in appreciation.

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Joined: 23 Jun 2012
Posts: 381
Location: Pakistan
GPA: 3.76
Re: An independent audit found no indication of tax  [#permalink]

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20 Sep 2018, 08:21
6
I can rule out A, C and D
Between B and E i will go with E
An independent audit found no indication of tax avoidance Result: No problem Exists (one conclusion that there is no problem) A leads to result B
B: The overall budget for the projects has been exceeded by a large amount; therefore, at least one of the projects has exceeded its budget by large amount. (what if budget of all projects increases? its more about weighted average)
E: An examination of the index of the book found no listing for the most prominent critic of the theory the book advocates; therefore, the book fails to refer to that critic.
No listing for the most prominent critic of the theory Result: it fails to refer that critic (one single conclusion)

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##### General Discussion
Intern
Joined: 14 Aug 2017
Posts: 15
GMAT 1: 660 Q49 V34
An independent audit found no indication of tax  [#permalink]

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20 Sep 2018, 09:15
I will go with E .What is OA?

-----------------------------
It's never too late
Intern
Joined: 09 Sep 2018
Posts: 1
Re: An independent audit found no indication of tax  [#permalink]

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20 Sep 2018, 09:45
1
An independent audit found no indication of tax avoidance on the part of the firm in the firm's accounts, therefore no such problem exists.???

The questionable reasoning in the argument above is most closely paralleled by that in which one of the following?

(A) The plan for the introduction of the new product has been unmodified so far; therefore, it will not be modified in the future.
(B) The overall budget for the projects has been exceeded by a large amount; therefore, at least one of the projects has exceeded its budget by large amount.
(C) A compilation of the best student essays of the year includes no essays on current events; therefore, students have become apathetic toward current events.
(D) A survey of schools in the district found no school without a need for building repair; therefore, the education provided to students in this district is substandard.
(E) An examination of the index of the book found no listing for the most prominent critic of the theory the book advocates; therefore, the book fails to refer to that critic.
Director
Joined: 20 Sep 2016
Posts: 555
Re: An independent audit found no indication of tax  [#permalink]

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20 Sep 2018, 10:00
2
Structure -

X (no indication of tax avoidance)
Y ( on the part of the firm in the firm's accounts)

X is not present in Y (no X in Y)

Flaw in reasoning- author assumes that one parameter is enough to conclude that the entity is absent.
Flaw- there can be several parameters which could evidently show that X exists.

Question type- parallel reasoning.

NOTE- try to match the structure first and eliminate as many as possible.

A. No improvement in X. © No improvement in X in future.
Only X ... Incorrect.

B. X... ©-At least one Y is present in X. Incorrect.

C. no X in Y. ©-Students are Z.
Three entities. Incorrect

D. no X in Y. ©-Education is Z.
Incorrect

E.no X in Y. ©-No X

Posted from my mobile device
Intern
Joined: 16 Jan 2018
Posts: 12
GMAT 1: 620 Q49 V25
Re: An independent audit found no indication of tax  [#permalink]

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20 Sep 2018, 12:07
I will go with E .

As it shows that we do have some evidence in the first part of the option to assume the second part of the option , Like the way argument in the question speaks about .
Re: An independent audit found no indication of tax &nbs [#permalink] 20 Sep 2018, 12:07
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