Question: 3 (8 Marks) [CLO 4] 1. During audit planning, an auditor obtained the following information: (x2+2 Marks) A. The company's financial stability or profitability is
3 (8 Marks) [CLO 4] 1. During audit planning, an auditor obtained the following information: (x2+2 Marks) A. The company's financial stability or profitability is threatened by economic, industrial, or its operating conditions. B. There is excessive pressure on management to meet debt repayment requirements a. Indicate whether the information indicates an increased risk for fraud. If the information indicates an increased risk of fraud, indicate which fraud condition Incentives/pressures, opportunities, or attitudes/rationalization) is indicated Situation A Fraud Risk-Yes or No Fraud Condition Fraud Condition Description
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