Which of the Following Factors Most Likely Would Heighten an Auditor's

question 908

Multiple Choice

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 entities 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.