Which of the Following Is not Ordinarily Considered a Factor

question 97

Multiple Choice

Which of the following is not ordinarily considered a factor indicative of increased financial reporting risk when an auditor is considering a client's risk assessment policies?

• A)Salaried sales personnel.
• B)Implementation of a new information system.
• C)Rapid growth of the organization.
• D)Corporate restructuring.

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Definitions:

Significant Achievements

are notable or important successes or accomplishments.

Change-Oriented Behavior

Actions undertaken by individuals or groups aimed at altering the status quo in an organization or system to improve performance.

External Environment

Outside factors and forces that can affect an organization's performance, including economic, technological, sociopolitical, and legal elements.

Adaptive Change

A form of change that requires individuals, teams, or organizations to adjust their underlying assumptions and strategies in response to anticipated or actual shifts in the environment.