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Free InquiryWhich of the following characteristics most likely would heighten an auditor’s concern about the risk of material misstatements arising from fraudulent financial reporting?
A. Management displays a significant disregard for regulatory authorities.
B. There is a lack of turnover of employees in the accounting department.
C. Monthly bank reconciliations usually include several deposits in transit.
D. Equipment is usually sold at a loss before being fully depreciated.
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