Which of the following is not a risk factor that the auditor should take into account when considering the possibility of misappropriation of assets at an audit client?
A) The presence of inventory items which are large in size and low in value
B) Employees with access to cash who have adverse relationships with management
C) The audit client announces required layoffs six months from now
D) An approved vendor list to detect unauthorized or fictitious vendors is not properly controlled

Question

Quizplus · Accepted Answer

Inventory items that are large in size and low in value are less likely to be targets for misappropriation because their size makes them difficult to steal discreetly, and their low value means they offer less incentive for theft. Other options describe situations that increase the risk of misappropriation.

Which of the Following Is Not a Risk Factor That