Affirmative answers to which of the following questions would lead the auditor to assess fraud risk at a higher level for cash or other liquid assets?
a. Is an individual with access to cash or its recording experiencing financial or personal distress?
b. Is an individual with access to cash or its recording being compensated at amount that he or she might consider low?
c. Is the company in potential violation of its debt covenants?
d. Is cash physically available to employees?
e. All of the above.
Answer: E
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