X Your answer is incorrect. Which of the following is an example of a qualitative materiality factor? The client is experiencing a slowdown in sales and is struggling to pay vendors on time. Total salaries expense is greater than 5% of income before taxes. The client installed a new security system to protect the building. Inventory represents 40% of current assets. X Your answer is incorrect. An auditor will identify accounts and related assertions at risk of material misstatement: to eliminate audit risk. after testing internal controls. to plan the audit to focus on those accounts. after writing the audit report. X Your answer is incorrect. Obtaining positive results from testing controls means that: the auditor can plan to reduce the reliance on detailed substantive testing of transactions and account balances. O materiality will be set at a low dollar amount. Ono substantive testing is required. the auditor can completely rely on a client's system of internal controls. X Your answer is incorrect. Which of the following are possible indicators of fraud in a company? (Select all that apply.) A high turnover of key employees Poor compensation practices A simplified business structure Overly dominant management X Your answer is incorrect. Which of the following are examples of fraudulent financial reporting? (Select all that apply.) Unrecorded liabilities Recording fictitious sales Improper asset valuations Writing checks to fictitious vendors