Which of these would not necessarily be considered to be a risk factor for potential misstatements?
A) there is intense price competition in the industry of operation.
B) profit margin has increased and inventory turnover days has decreased
C) an employee in the cash office was passed over for a promotion.
D) segregation of duties is not practiced.

Question

Quizplus · Accepted Answer

Profit margin increase and decreased inventory turnover days might indicate improved operational efficiency rather than a risk factor for potential misstatements. These metrics can be positive signs and do not inherently suggest a risk of misstatement.

Which of These Would Not Necessarily Be Considered to Be