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Management has implemented a segregation-of-duties policy for handling inventory.

Management has implemented a segregation-of-duties policy for handling inventory. Which of the following fraud risks would be more concerning to an internal auditor following the implementation of this new policy?

A.

The risk of collusion between parties.

B.

The risk of falsified reconciliations.

C.

The risk of low-liquidity inventory.

D.

The risk of damages to the inventory.

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