Company XYZ Had a Long-Standing Relationship with a Leading Law

question 9

Multiple Choice

Company XYZ had a long-standing relationship with a leading law firm.In fact,the law firm's business with this company was one of its most profitable relationships.If the law firm decides that it no longer wants to conduct business with the company,this is:

• A)indicative that the company might have a lot of customer law suits against it.
• B)not any sort of meaningful indicator of fraud activity.
• C)a large cause for concern that financial statement fraud may be occurring.
• D)an indication that the client has likely outgrown the law firm.

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Definitions:

Volcanic Neck

A steep, typically butte-shaped topographic feature composed of volcanic materials that formed in the conduit within or beneath a volcanic vent and that were more resistant to erosion than surrounding materials.

Batholith

A large mass of intrusive igneous rock, often granite, that has crystallized deep in the Earth's crust.

Oceanic Settings

Environmental conditions pertaining to the ocean, including its physical, chemical, and biological characteristics.

Volcanic Islands

Islands that are formed from the eruption of volcanoes on the ocean floor, often emerging above sea level.