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Presented below are ten conditions noted by an external auditorduring the audit of the financial statements of a client that areconsidered to be fraud risk factors. Indicate the classification ofthe fraud risk factor as:? Incentives/Pressures? Opportunities? Attitudes/RationalizationsFraud Risk Factor Classification1. Significant related-party transaction outside the normalcourse of business2. Promotions and compensation inconsistent with managementexpectations3. Significant bank accounts in tax-haven jurisdictions forwhich there is not apparent business justification4. Excessive interest by management in meeting financial targetsand maintaining stock price5. Management dominated by an individual with significantfinancial interest in the entity6. Management refuses to give the auditor permission to performstandard audit procedures7. Ineffective oversight of management relative to the design,implementation and maintenance of internal controls8. Declining profits and operating cash flows have created theneed for the entity to seek new financing9. Failure by management to address known significantdeficiencies in internal controls over financial reporting10. New accounting standards that are highly-complex and requiresignificant judgments must be implemented