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An audit observation states the following: "Despite the rules of the organization there is no
approved credit risk management policy in the subsidiary. The subsidiary is concluding contacts
with clients who have very high credit ratings. The internal audit team tested 50 contacts and 17
showed clients with a poor credit history" Which of the following components are missing in the
observation?
(A). Cause and effect. (B). Effect and criteria (C). Condition and cause (D). Criteria and
condition

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