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 misappropriation of assets at an audit client?

A) The presence of inventory items which are large in size and low in value
B) Employees with access to cash who have adverse relationships with management
C) The audit client announces required layoffs six months from now
D) An approved vendor list to detect unauthorized or fictitious vendors is not properly controlled