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A) Bank reconciliation statement includes deposits in transit
B) Plant and machinery is sold at a loss
C) Political contribution by the company
D) The company is planning a initial public offer of quality shares to raise additional capital for expansion
Political contribution by the company, if a Tax Exemption valid receipt can be provided will validate the contribution. Contributions to gain tender preference over other tenderers will be a deviation from legislation and indicate management lacks integrity. See third paragraph regarding risk.
Deposits in transit that can't not be traced to proof of payment (electronic funds transfer) from customer.
Both factors, deposits in transit and political contribution would be items that would raise risk, and audit procedures will need to be targeted at these to mitigate the risk. The political contribution is the more severe risk, as it could be indicative of risk at financial statement level.
c answer <<<<<<<<<<<<<<<<<<<<<<<<<<<<<
Political contribution .......
C)..>>>>>>>>>>>> Political contribution by the company
C) Political contribution by the company
Political Contribution by the company are likely to be identified as a fraud factor by the auditor.
Agreed with all answers, i would like to say that the correct answer is C
Option C spot on, Now a days when politics is considered nothing can go right.
Option (A) >>>>>>>>>>>>>>>>> Bank reconciliation statement includes deposits in transit.
Option ( C ) .......................
