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For each of the independent situation described below select the appropriate inherent risk factor described and the effect of the inherent risk factor on the

For each of the independent situation described below select the appropriate inherent risk factor described and the effect of the inherent risk factor on the company’s net income using the following:

Inherent Risk Factor Effect on Net Income (1) Complexity (2) Estimates (3) Industry circumstances (4) Other external circumstances (5) Susceptibility of asset to theft (6) Volume (7) Overstatement (8) Understatement (9) No effect

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