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1- Identify factors that would be indicators of opportunities to commit fraud. How do auditors identify fraud risk factors at the beginning of the audit?

2- The control environment is often referred to as the “tone of the top”. Why is the “tone at the top” so important.

3- You are investigating a company to determine its acceptability as a new audit client. You learn that the accounting staff at this entity is “overworked”. What concerns, if any, would this raise?. What about if you learn that this potential client has a high turnover rate of employees in top accounting positions?

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