Which of the following matters relating to an entity’s operations would an auditor most likely consider as an inherent risk factor in planning an audit?a. The entity’s fiscal year ends on June 30.b. The entity enters into significant derivative transactions as hedges.c. The entity’s financial statements are generated at an outside service center.d. The entity’s financial data is available only in computer-readable form.
Which of the following matters relating to an entity’s operations would an auditor most likely consider as an inherent risk factor in planning an audit?a. The entity’s fiscal year ends on June 30.b. The entity enters into significant derivative transactions as hedges.c. The entity’s financial statements are generated at an outside service center.d. The entity’s financial data is available only in computer-readable form.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Which of the following matters relating to an entity’s operations would an auditor most likely consider as an inherent risk factor in planning an audit?
a. The entity’s fiscal year ends on June 30.
b. The entity enters into significant derivative transactions as hedges.
c. The entity’s financial statements are generated at an outside service center.
d. The entity’s financial data is available only in computer-readable form.
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