Which of the following characteristics most likely would heighten an auditor’s concern about the risk of material misstatement arising from fraudulent financial reporting?

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Here is the solution for Which of the following characteristics most likely would heighten an auditor’s concern about the risk of material misstatement arising from fraudulent financial reporting?. The solution is given after the options.

Which of the following characteristics most likely would heighten an auditor’s concern about the risk of material misstatement arising from fraudulent financial reporting?

There is a lack of interest by management in maintaining an earnings trend.

Computer hardware is usually sold at a loss before being fully depreciated.

Management had frequent disputes with the auditor on accounting matters.

Monthly bank reconciliations usually include several large checks outstanding.

Correct Answer

Management had frequent disputes with the auditor on accounting matters.

Explanation:

Management had frequent disputes with the auditor on accounting matters. is the answer for Which of the following characteristics most likely would heighten an auditor’s concern about the risk of material misstatement arising from fraudulent financial reporting?

Conclusion:

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