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During the preliminary stages of the audit of Zotero Enterprises, a national provider of children's play equipment, the external auditors, Mankins CPA Firm, has

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During the preliminary stages of the audit of Zotero Enterprises, a national provider of children's play equipment, the external auditors, Mankins CPA Firm, has noted that the client's hierarchy and reporting lines are blurred and confusing. As a result of this finding, how might the auditors adapt their audit procedures? The auditors are likely to request additional written assurances from senior management, to guard against any future litigation related to the audit or the client's financial statements. The auditors are likely to increase control risk, and also increase the risk of material misstatement. The auditors are likely to place increased reliance on the internal auditors, as this function is more familiar with the client's operations. The auditors are likely to conduct decreased substantive procedures, and increase analytical procedures and tests of details.

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