Which of the following is typically not a significant risk factor that an auditor will consider in the client acceptance of Stitch Magee Co.?

Question

Quizplus · Accepted Answer

The fact that Stitch Magee Co. procures much of its raw materials from Detroit, Michigan is not typically seen as a significant risk factor in client acceptance by auditors. The other options all present potential risks that an auditor would consider. Brad Stitch's prior investigation for securities violations, the fact that the company is a public company in a high technology industry, and the significant amount of inventory sold to a company owned by the treasurer's father all pose potential risk factors that would need to be evaluated by the auditor.

Which of the Following Is Typically Not a Significant Risk