Insistence from the CEO that she must be present at all meetings between the audit committee and internal/external auditors would cause auditors to assess inherent risk at a higher level.

Question

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If the CEO insists on being present at all meetings with auditors, auditors may perceive that she is attempting to interfere or influence the audit process, which can lead to an assessment of higher inherent risk. This is because the presence of management may limit the auditors' ability to perform their duties independently and objectively.

Insistence from the CEO That She Must Be Present at All