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Which of the following circumstances would an auditor most likely consider a risk factor relating to misstatements arising from fraudulent financial reporting? Several members of
Which of the following circumstances would an auditor most likely consider a risk factor relating to misstatements arising from fraudulent financial reporting?
Several members of management have recently purchased additional shares of the entity's stock. |
Several members of the board of directors have recently sold shares of the entity's stock. |
The entity distributes financial forecasts to financial analysts that predict conservative operating results. |
Management is interested in maintaining the entity's earnings trend by using aggressive accounting practices. |
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