If Control Risk Is High or Maximum, and There Are

question 58

Multiple Choice

If control risk is high or maximum, and there are no compensating controls, the auditor should _______.

• A)assume that fraud risk is high, and design appropriate substantive tests, particularly substantive tests of transactions
• B)assume that fraud risk is low, and design appropriate substantive tests, particularly substantive tests of transactions
• C)consider withdrawing from the engagement
• D)request additional written representation from management

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Definitions:

Suspicious Motives

The assumption or belief that underlying intentions or motivations of an individual or group are questionable, dishonest, or harmful.

Extraversion

A personality trait characterized by outgoingness, sociability, and a tendency to seek stimulation and the company of others.

Narcissism

A personality trait characterized by an excessive interest in or admiration of oneself and one's physical appearance.

Interpersonal Intelligence

The ability to understand and interact effectively with others, recognizing their moods, motivations, and intentions.