The audit partners of DGH CPA firm are meeting with a major client's internal audit function to discuss fraud risk assessment procedures instituted by the client. The audit partners are particularly interested in learning of any areas of increased audit risk, and why these risks may exist. Which of the following choices represent areas of increased risk that the external auditors may choose to focus on? (Select all that apply.) Due to aggressive sales and growth targets by management, the internal auditors have questioned some revenue recognition policies instituted by management in the past. Management and the internal audit function installed a new enterprise planning system two years prior, which improved the accuracy of the client's records and decreased errors. The Chief Financial Officer of the client has inquired numerous times of the internal audit function as to whether the firm can switch from LIFO to FIFO inventory costing, but failed to provide a legitimate reason why.

The audit partners of DGH CPA firm are meeting with a major client's internal audit function to discuss fraud risk assessment procedures instituted by the client. The audit partners are particularly interested in learning of any areas of increased audit risk, and why these risks may exist. Which of the following choices represent areas of increased risk that the external auditors may choose to focus on? (Select all that opply)