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.

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Definitions:

Social Learning Theory

A theory in psychology that suggests people learn new behaviors, attitudes, and norms through observation and imitation of others in their social environment.

Same-Sex Peers

individuals of the same gender with whom a person associates, often significant in social development and learning.

Gender-Typed Play

Play activities that are traditionally associated with or preferred by one gender over the other.

Traditional Gender Roles

Social and behavioral norms that are widely considered appropriate for individuals of a specific sex within a particular culture.