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Which of the following situations would raise an auditor's concern about the risk of fraudulent financial reporting? Multiple Choice Management's lack of interest in increasing

Which of the following situations would raise an auditor's concern about the risk of fraudulent financial reporting?

Multiple Choice

  • Management's lack of interest in increasing the dividend paid on common stock.

  • Inability to generate positive cash flows from operations, while reporting large increases in earnings.

  • Large amounts of liquid assets that are easily convertible into cash.

  • Inability to borrow necessary capital without obtaining waivers on debt covenants.

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