Which of the Following Is True Regarding Auditors and Fraud

question 27

Multiple Choice

Which of the following is true regarding auditors and fraud?

• A)Auditors are required to detect all fraud during an audit.
• B)Auditors should actively investigate the possibility of fraud if suspicious circumstances exist.
• C)In the Kingston Cotton Mill case, it was said that the audit role was not primarily to detect fraud.
• D)b and c are true.

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Definitions:

Free Association

A psychoanalytic technique in which a patient says whatever comes to mind without censorship or restraint, used to explore unconscious thoughts and feelings.

Psychoanalytic Methods

Techniques developed by Sigmund Freud and his followers to explore the unconscious mind's structure and its influence on human behavior.

Cognitive Therapists

Professionals who treat psychological issues by changing dysfunctional thought patterns, attitudes, and beliefs.

Rational-emotive Therapists

Mental health professionals who use rational emotive behavior therapy to help clients identify and change irrational beliefs.