Which of the Following Is Not an Acceptable Response to Fraud

question 18

Multiple Choice

Which of the following is not an acceptable response to fraud risks related to sales that were identified in an audit?

• A)Exercise professional skepticism when performing sales testing.
• B)Increase the assessment of control risk for sales.
• C)Increase the assessment of detection risk for sales.
• D)Perform additional substantive sales procedures on a surprise basis.

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Definitions:

Equilibrium Price

The rate at which the demand for a good or service is equal to the supply, achieving a state of market equilibrium.

Market Imbalances

Situations where the quantity of a good or service supplied does not equal the quantity demanded, leading to surplus or shortage.

Drug Trade

The illegal production, distribution, and sale of drugs that are subject to drug prohibition laws.

Equilibrium Price

The market price at which the supply of an item equals the demand for it, leading to a stable market condition.