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Consider each of the following items and describe how they affect the risk of a material misstatement: 1. Management has a poor reputation in the
Consider each of the following items and describe how they affect the risk of a material misstatement:
1. Management has a poor reputation in the business community over the integrity of recent decisions.
2. Repairs and maintenance accounts were misstated in previous audits.
3. Management lacks experience.
4. The entity is facing a cash flow problem.
5. The inventory consists of a range of expensive jewellery
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