In Those Audits Where There Is a Heightened Risk of Fraud

question 95

Multiple Choice

In those audits where there is a heightened risk of fraud related to debt obligations, which of the following will the auditor not typically perform?

• A) Search public records to identify debt obligations.
• B) Vouch and trace loan proceeds and debt payments.
• C) Send confirmations to lenders and creditors, including confirmation of compliance with any debt covenants.
• D) Obtain photocopies of supporting documents.

---

Definitions:

Expert Power

The influence and authority one gains from possessing specific knowledge or expertise in a particular area.

Countertransference

The emotional reactions and projections that a therapist may have towards a client, which can influence the therapeutic relationship.

Psychoanalytic Tradition

A branch of psychology originating from the work of Sigmund Freud, focused on the role of unconscious motivations and early developmental experiences in shaping personality and behavior.

Transference

A phenomenon in psychology where an individual unconsciously redirects feelings and attitudes from a person or situation in the past to a person or situation in the present.