An Auditor Learns That a Client Employee in Control of Inventory

question 20

Multiple Choice

An auditor learns that a client employee in control of inventory gets divorced and is responsible for paying a large amount of child support.All of the following for the audit of inventory likely are true except:

• A) Fraud risk increases.
• B) The risk of misappropriation of assets increases.
• C) Risk of material misstatement increases.
• D) Detection risk increases.