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An electrician visits a client to assess the scope of work.

An electrician visits a client to assess the scope of work. After the visit, the sales office compiles and sends the client a proposal based on the electrician's estimation and approved price list. The internal auditor notices that in the last six months, the number of cancelled proposals has increased substantially. Which of the following is a fraud risk scenario that the auditor should consider in this situation?

A.

Some electricians may be offering clients opportunities for reduced fees if they pay with cash.

B.

There is a new competitor in the area who offers better prices.

C.

Sales representatives may be manipulating the proposals to include additional costs.

D.

An unauthorized person may be modifying client data and cancelling the proposals.

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