Beth Babett, CPA, is associated with a client's financial statements but is not independent with respect to that client. If she is requested to perform agreed upon procedures, she should a) Recommend the engagement be changed to an examination. b) Accept the engagement but must disclaim an opinion. c) Decline the engagement. d) Accept the engagement and express negative assurance. Which of the following characteristics most likely would heighten an auditor's concern about the risk of material misstatements arising from fraudulent financial reporting? a) The entity's industry is experiencing declining customer demand. b) Employees who handle cash receipts are not bonded. c) Bank reconciliations usually include in-transit deposits. d) Equipment is often sold at a loss before being fully depreciated. .