Which of the following factors most likely
would heighten an auditor's concern about
the risk of fraudulent financial reporting?
a. Large amounts of liquid assets that are
easily convertible into cash.
b. Low growth and profitability as compared
to other entity's in the same industry.
c. Financial management's participation in
the initial selection of accounting
principles.
d. An overly complex organizational
structure involving unusual lines of
authority.
would heighten an auditor's concern about
the risk of fraudulent financial reporting?
a. Large amounts of liquid assets that are
easily convertible into cash.
b. Low growth and profitability as compared
to other entity's in the same industry.
c. Financial management's participation in
the initial selection of accounting
principles.
d. An overly complex organizational
structure involving unusual lines of
authority.