Which Statement Is True Regarding the Three Fraud Risk Factors

question 945

Multiple Choice

Which statement is true regarding the three fraud risk factors (incentives/pressures, opportunity, and rationalization/attitude) ?

• A) The auditor should determine whether and to what extent fraud risk factors are present as part of the final overall review stage of the audit.
• B) The fraud risk factors should be discussed by engagement personnel during planning.
• C) The existence of all three fraud risk factors indicates that fraud has occurred.
• D) Lack of observation of all three fraud risk factors indicates that fraud has not occurred.

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Definitions:

Writ of Execution

A court order granting a creditor the right to take possession of a debtor's property after a court judgment.

Seize

To forcibly take possession or control of something by legal authority or power.

Law Enforcement Officers

Individuals authorized to enforce laws, maintain public order, and protect citizens and property.

Artisan's Lien

A legal claim granted to craftsmen or workers on a property they have improved or materials they have supplied until they are compensated for their services.