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Fraud risk factors are examples of factors that increase the risk of fraud. Which of the following ...

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Fraud risk factors are examples of factors that increase the risk of fraud. Which of the following ...

Fraud risk factors are examples of factors that increase the risk of fraud. Which of the following is an example of a management "incentives or pressures" risk factor?
A) Customer demand for a new product line was significantly less than expected.
B) Management and the auditors disagree upon how to value a large contract in progress.
C) There is only one board member who understands financial statements, and she has suffered a heart attack.
D) There has been significant turnover in the accounting department in the last year.

Textbook

Auditing: The Art and Science of Assurance Engagements, Canadian Edition

Edition: 12^th

Authors: Arens, Elder, Beasley, Splettstoesser

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Auditing: The Art and Science of Assurance Engagements, Twelfth Canadian Edition, 12/E (Arens, Elder, Beasley, Splettstoesser)

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