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Which risk factor should be considered an incentive

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Reference no: EM132686077

Problem 1: Which risk factor should be considered an incentive or pressure per SAS No. 99 (AD 316)?

a. Significant related party transactions.

b. Unstable organizational structure.

c. High turnover of senior executives.

d. Ineffective communication.

e. Recurring negative cash flow.

Problem 2: Which factor would not be an opportunity for misappropriation of assets?

a. Personal financial obligation (e.g. wife is sick).

b. Inventory items are small in size and valuable.

c. Inadequate physical safeguards of assets.

d. Lack of mandatory vacation policy for employees.

e. None of the above.

Reference no: EM132686077

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