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Phillips CPA Firm is auditing the accounts of Tojo Enterprises, Inc., a national distributor of...

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Accounting

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Phillips CPA Firm is auditing the accounts of Tojo Enterprises, Inc., a national distributor of kitchen appliances. After reviewing the minutes of board of directors meetings as well as recent SEC filings, Phillips CPA firm have noted that key executives are extremely close to achieving a substantial bonus if the firm's stock price achieves a certain level in the market. Based on this finding, what might Phillips CPA Firm decide to do? Phillips CPA Firm are likely to audit competing companies within the same industry as a basis for comparison. Phillips CPA Firm arelikely to assess control risk as low on the premise that management's desire to achieve stock price forecasts will increase fraud risk. Phillips CPA Firm are likely to assume fraud risk is high, due to senior management's proximity to achieving certain desired stock prices. None of these answer choices are correct

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