Question: SIGNIFICANT RISKS In the overall audit strategy for the audit of Keystone Computers & Networks, Inc., Several significant risks were noted as a result of

SIGNIFICANT RISKS

In the overall audit strategy for the audit of Keystone Computers & Networks, Inc., Several significant risks were noted as a result of obtaining information about KCN and its environment, including:

1) KCN has engaged in a strategy to sell to customers with higher credit risk.

2) The officers of the company receive significant bonuses based on quarterly results.

For each of the two above risks, identify the implications and potential responses.

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