What Should an Audit Team Do When It Discovers That

question 64

Multiple Choice

What should an audit team do when it discovers that fraud risk factors are present on an audit engagement?

• A) Retract from the client and inform regulatory bodies.
• B) Modify procedures to actively search for the existence of fraud.
• C) Reduce the amount of evidence required and resort to management inquiry.
• D) Turn the audit over to forensic accountants.

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Definitions:

Swollen and Warm

Description of an area of the body that has become enlarged and feels hot to the touch, often indicating inflammation or infection.

Normal Pulse

The regular beat of the heart, typically measured as beats per minute, which indicates the heart's health and functioning.

Lordosis

A condition characterized by an excessive inward curvature of the spine, commonly occurring in the lower back.

Lower Extremity

Refers to the lower limbs or legs of the human body, including the thighs, knees, calves, ankles, and feet.