The Auditor Has a Responsibility to Respond to Fraud Risk

question 2

Multiple Choice

The auditor has a responsibility to respond to fraud risk by planning and performing the audit to obtain reasonable assurance that material misstatements, whether due to error or fraud, are detected. So the auditor should:

• A) always assume that management is dishonest.
• B) maintain a level of professional scepticism.
• C) expect to find fraud on all audits.
• D) always assume unquestioned honesty.

Understand the role of education in advancing women's positions in professional hierarchies.

Know the historical recognition of domestic violence as a social problem in different cultures.

Understand the legal and social advocacy measures designed to protect women, including legislation and community services.

Understand the concept of merger premiums and their impact on both acquiring and target firms' stockholders.

---

Definitions:

Claim

A demand for something as due, particularly money, property, or legal relief, often the subject of legal action.

Insurer Duty

The obligations that an insurance company has toward its policyholders, including the duty to act in good faith and to pay valid claims.

Incontestability Clause

A clause in a policy for life or health insurance stating that after the policy has been in force for a specified length of time (usually two or three years), the insurer cannot contest statements made in the policyholder’s application.

Insurance Policy

A contract between an insurer and a policyholder that outlines the terms and conditions under which the insurer agrees to compensate for specific losses.