How Must an Auditor Address Fraud in the Planning Stage

question 20

Multiple Choice

How must an auditor address fraud in the planning stage?

• A)The auditor must test for fraud in the planning stage by sampling accounts.
• B)The auditor must consider the likelihood of fraud existing in the company in the planning stage.
• C)The auditor must realize that most people are honest and not automatically assume that fraud exists when planning the audit.
• D)The auditor must not be aggressive in its initial approach to fraud,as trust may be lost by the client.

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Definitions:

Civil Society

refers to the aggregate of non-governmental organizations and institutions that manifest interests and will of citizens or the society at large, working on the voluntary basis.

State Institutions

Established organizations or foundations, typically funded and operated by the government, designed to serve the public interest and fulfill a specific function.

Political Revolution

A fundamental and rapid change in political power or organizational structures, often involving violence or upheaval.

Social Movement

A collective effort by a large group of people aiming to promote or resist change in society through various forms of action.