Understanding a company's relationships with financial institutions and bondholders is important because: a. it can indicate the extent to which the company is leveraged. b. it can reveal whether significant short selling of the company's stock has occurred. c. it can uncover the fraudulent transactions from special purpose entities. d. it may help in raising additional funds from the financial institutions. Which of the following actions by the company auditor increases the potential to detect fraud? a. Comparing current procedure test results to a prior year b. Performing new procedures not conducted in prior years c. Assigning the same audit staff to the audit from year to year d. Carefully checking the audit test results