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Which Factors Would Likely Increase an Auditor's Concern Pertaining to Risk

Question 61

Multiple Choice

Which factors would likely increase an auditor's concern pertaining to risk of fraudulent financial reporting?


A) Excessive amount of liquid assets that could easily be converted to cash.
B) Low profitability/growth with respect to competitors in the same industry.
C) Management participation in selection of accounting methods and principles.
D) An extremely confusing and overly complex institutional structure, with blurred lines of authority.

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