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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