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Why are the bonds treated as a conservative investment? Do you think the treasury bills are risk-free assets?

Auditing: A Risk Based-Approach to Conducting a Quality Audit

10th Edition

ISBN:9781305080577

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter16: Advanced Topics Concerning Complex Auditing Judgments

Section: Chapter Questions

Problem 58RSCQ

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But isn't it because when you invest in government bonds it's riskfree and therefore is Lokey wrong?
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