Multiple Choice
Which one of the following discoveries by the auditor would NOT raise the red flag of increased inherent risk?
A) This is the fourth consecutive year that the firm has audited this client.
B) Client is a parent company with a subsidiary.
C) The client is an electronics manufacturer that is holding extensive inventory.
D) Review of the results of the previous year's audit shows there were significant misstatements in accounts payable.
Correct Answer:
Verified
Correct Answer:
Verified
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