Company XYZ had a long-standing relationship with a leading law firm.In fact,the law firm's business with this company was one of its most profitable relationships.If the law firm decides that it no longer wants to conduct business with the company,this is:
A)indicative that the company might have a lot of customer law suits against it.
B)not any sort of meaningful indicator of fraud activity.
C)a large cause for concern that financial statement fraud may be occurring.
D)an indication that the client has likely outgrown the law firm.

Question

Quizplus · Accepted Answer

The decision of a law firm to end a profitable relationship with a company could be a red flag for financial statement fraud, as it may suggest the firm has concerns about the company's legal or financial practices.

Company XYZ Had a Long-Standing Relationship with a Leading Law