Which of the Following Is Not a Risk Factor That

Multiple Choice

Which of the following is not a risk factor that the auditor should take into account when considering the possibility of fraudulent financial reporting at an audit client?

A) Significant accounting estimates are not difficult for the auditor to verify and justify.
B) Board members' personal net worth is threatened if the entity's financial performance does not meet market expectations.
C) Increasing business complexity occurs as a result of numerous recent acquisitions.
D) Information technology personnel are found to be not keeping up with the latest trends in internal controls and data security.