AC410-01_Unit 5_Project_Marjorie Bowden

AC410-01_Unit 5_Project_Marjorie Bowden - AC410-01 Unit 5...

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AC410-01 Unit 5 Project Marjorie Bowden 9-56 A. The lack of segregated duties would be one of the risk factors indicated in the dialogue. Another would be that Kent, the CPA engaged in the audit, has the lack of professional skepticism. There is also a concern for internal control deficiencies. The CEO, Mint, of Computer Services Co, was given to much power which would make fraudulent activity easier to commit. Kent does not show that he is interested enough in the issue of fraud risk taking the steps necessary while planning the audit to identify fraud if it is present. B. Kent's first misconception is not properly planning the audit, and due to his lack of interest in the planning process. His attitude is that if they find fraud then they would deal with it at that point. He is lacking the professional skepticism that is needed to provide a questioning mind and a critical assessment that is needed for an audit. This would be followed by the lack of the segregation of duties and internal control deficiencies. Mint, the CEO, makes a small salary but has
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AC410-01_Unit 5_Project_Marjorie Bowden - AC410-01 Unit 5...

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