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Question 1: When a risk assessment process has been used to construct an audit engagement
schedule,which of the following should receive attention first?
A. The external auditors have requested assistance for their upcoming annual audit.
B. A new accounts payable system is currently undergoing testing by the information technology
department.
C. Management has requested an investigation of possible lapping in receivables.
D. The existing accounts payable system has not been audited over the past year.
Correct Answer: C
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