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| Which of the following circumstances would an auditor most likely consider a risk factor relating to misstatements arising from fraudulent financial reporting? A. Several members of management have recently purchased additional shares of the entity’s stock. B. Several members of the board of directors have recently sold shares of the entity’s stock. C. Management is interested in maintaining the entity’s earnings trend by using aggressive accounting practices. D. The entity distributes financial forecasts to financial analysts that predict conservative operating results. |