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Which of the following situations most likely represents the highest risk of a material misstatement arising from misappropriations of assets?

a. A large number of bearer bonds on hand. b. A large number of inventory items with low sales prices. c. A large number of transactions processed in a short period of time. d. A large number of fixed assets with easily identifiable serial numbers.

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Question added by Deleted user
Date Posted: 2013/08/22
Riyaz Ahmed Kalemadar
by Riyaz Ahmed Kalemadar , Office Admin, Warehouse admin & Commercial Executive , Dharwad Mishra Pedha

b

Ezzidin Ibrahim
by Ezzidin Ibrahim , Financial Controller , Karim Food Industries

a. A large number of bearer bonds on hand, because markets price are fluctuated.

Mir Mujtaba Ali
by Mir Mujtaba Ali , Internal Audit Manager , Confidential

a.) 

because they can be sold to anyone.

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