Current Attempt in Progress You are an external auditor performing an interview with a senior manager of financial accounting at your firm's new client. During the interview, you ask the senior manager to explain the overall operations and control environment of the department. Assess each of the statements the senior manager gives you and identify it as either (i) a fraud risk or (ii) not a fraud risk. If it is a fraud risk, identify whether it is most likely to indicate the possibility of (A) asset misappropriation, (B) financial statement fraud, or (C) either. 1. Access to blank checks and signature plates is restricted to the cash disbursements bookkeeper, who personally reconciles the monthly bank statements. 2. There is a lack of independent checks in the accounts receivable process. 3. The accounting department has experienced high turnover among senior management. 4. There was a strained relationship between management and its previous external auditors. 5. Vendor invoices are matched with related purchase orders and receiving documents (a three-way match) by the accounts payable bookkeeper, who then approves the payments. 6. Management has been pushing for using aggressive accounting practices to maintain an increasing trend of earnings. 7. The company has consistently reporting substantial earnings growth but struggles to generate cash flows from operations. Attempts: 0 of 1 used