Which of the following characteristics most
likely would heighten an auditor’s concern
about the risk of intentional manipulation of
financial statements?
a. Turnover of senior accounting personnel
is low.
b. Insiders recently purchased additional
shares of the entity’s stock.
c. Management places substantial
emphasis on meeting earnings
projections.
d. The rate of change in the entity’s
industry is slow.
likely would heighten an auditor’s concern
about the risk of intentional manipulation of
financial statements?
a. Turnover of senior accounting personnel
is low.
b. Insiders recently purchased additional
shares of the entity’s stock.
c. Management places substantial
emphasis on meeting earnings
projections.
d. The rate of change in the entity’s
industry is slow.