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Auditors may identify conditions during fieldwork that change or support a judgment about the initial assessment of fraud risks. Which of the following conditions should alert an auditor about the initial assessment?

a. missing or conflicting evidence

b. discrepancies in the accounting records

c. unusual relationships between the auditor and management

d. larger firms often undertake a higher number of complex transactions that may leave them open to accusations of unscrupulousness

e. none of the above

Accounting Basics, Accounting

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