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Engagement Risk Has Been Defined as the Risk of Potential

Question 71

Multiple Choice

Engagement risk has been defined as the risk of potential losses that are incurred by the auditor in being associated with a particular client.Which of the following factors are not associated with increased engagement risk for the auditor?


A) Management with questionable integrity.
B) A failed company.
C) Materially misstated financial statements.
D) All of these factors increase engagement risk.

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