The Auditor Responds to Risks of Material Misstatements Due to Fraud

question 210

Multiple Choice

The auditor responds to risks of material misstatements due to fraud in which of the following ways?

• A) A response that has an overall effect on how the audit is conducted
• B) A response to identified risks involving the nature, timing and extent of auditing procedures to be performed
• C) A response involving the performance of certain procedures to further address the risk of material misstatement due to fraud involving management override of controls
• D) All of the above

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Definitions:

True Values

The accurate or real values of variables or quantities, devoid of any bias or error.

Selling Price

The amount of money charged for a product or service, which may include costs, profit margins, and taxes.

First-Price Auction

A bidding system where the item is awarded to the top bidder at the price they offered.

True Values

The actual, inherent worth or significance of something, often in a context where this may not be initially apparent.