Which of the Following Is Typically Not a Significant Risk

question 8

Multiple Choice

Which of the following is typically not a significant risk factor that an auditor will consider in the client acceptance of Stitch Magee Co.?

• A)Brad Stitch,the president and 50% owner of Stitch Magee was investigated for securities violations four years earlier.
• B)Stitch Magee Co.is a public company in the high technology industry.
• C)Stitch Magee Co.is a manufacturing company that procures much of its raw materials from the Detroit,Michigan area.
• D)Stitch Magee Co.sells 25% of its inventory to Nani,Inc.which is owned primarily by Nani Magee,the father of Stitch Magee's treasurer,vice president of finance and 50% owner.

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Definitions:

Over the Phone

Pertains to interactions or transactions conducted via a telephone call.

Death Notifications

The process of informing next of kin or loved ones about the death of an individual, typically conducted by authorities or professionals trained to handle such situations sensitively.

Personal Belongings

Items owned by an individual, typically of personal or sentimental value, including clothing, documentation, and personal items.

Survivor

An individual who has lived through a traumatic, perilous, or life-threatening event or situation.