Explain how would auditor interpret negative information

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Reference no: EM13124712

Kallen Electronics, Inc. (KEI), a public company, has been experiencing negative cash flows from operations and deteriorating profit margins. recent press releases have been quite pessimistic, and the company's stock price is in a downward trend. how would an auditor interpret this negative information with regard to a potential audit client? how would your answer be different if this was a continuing client?

Reference no: EM13124712

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