Which of the Following Is Not Required by AU-C 240

question 54

Multiple Choice

Which of the following is not required by AU-C 240, "Consideration of Fraud in a Financial Statement Audit"?

• A)Conduct a continuing assessment of the risks of material misstatement due to fraud throughout the audit.
• B)Conduct a discussion by the audit team of the risks of material misstatement due to fraud.
• C)Conduct the audit with professional skepticism, which includes an attitude that assumes balances are incorrect until verified by the auditor.
• D)Conduct inquiries of shareholders as to their views about the risks of fraud and their knowledge of any fraud or suspected fraud.

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Definitions:

Confidence Interval

A group of values derived from statistical samples that is likely to hold the value of a population parameter that is unknown.

Population Mean

The average of all values in a complete population, representing a central value of a dataset.

Confidence Interval

A range of values, derived from sample statistics, that is believed to contain the value of an unknown population parameter at a certain confidence level.

Population Standard Deviation

A measure of the dispersion or variability of a set of data points in a population.