3.51 - accounts to misstatement). 9.) Increase. UEL is...

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3.51 When the risk goes down, it is better. Profitable company that has assured revenues coming into the future, so less inherent risk. If it decreases risk then it doesn’t mean it’s a fraud risk, but if it went up then it is. 1.) Decrease in risk because of some factors 2.) Increase. 3.) Increase. Fraud risk factor? Yes. 4.) Increase. Turnover is a red flag that the dept might have problems. 5.) Decrease 6.) No effect 7.) Decrease. 8.) Increase. Changing accounting practices increases IR (the susceptibility of the
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Unformatted text preview: accounts to misstatement). 9.) Increase. UEL is material. Fraud risk. 10.) Decrease. if the litigation was disclosed in prior years, either the potential loss was prob but could not be reasonably estimated or it was reasonably possible. amount of potential 11.) Increase 12.) Increase 13.) No effect. 14.) Increase 15.) Increase. Pressure to put your best foot forward Module C We follow GAAS...
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