If an audit client made an investment of $1 million and there was a 99% probability the

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If an audit client made an investment of $1 million and there was a 99% probability the project cash flows would be zero,

a. The $1 million investment should be recorded as an asset in the balance sheet.

b. The $1 million investment should not be recorded in the balance sheet.

c. Audit risk is significant.

d. Control risk is significant.

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Auditing An International Approach

ISBN: 978-1259087462

7th edition

Authors: Wally J. Smieliauskas, Kathryn Bewley

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Question Posted: Jun 24, 2019 05:00 AM

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If an audit client made an investment of $1 million and there was a 99% probability the

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Auditing An International Approach

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