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Discuss the concept of exposure, and explain why firms may tolerate some exposure

  1. Discuss the concept of exposure, and explain why firms may tolerate some exposure.

  2. If detective controls signal error flags, why shouldn’t these types of controls automatically make a correction in the identified error? Why are corrective controls necessary?

  3. Discuss the nonaccounting services that external auditors are no longer permitted to render to au- dit clients.

  4. Discuss whether a firm with fewer employees than there are incompatible tasks should rely more heavily on general authority than specific authority.

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