An Auditor Receives Anonymous Information That Fraud Is Occurring in the Operation

question 344

Multiple Choice

An auditor receives anonymous information that fraud is occurring in the operation being audited, but no details are given as to the type of fraud or the individuals involved. There are several areas in which fraud could occur. The auditor should:

• A) Identify the area that has the greatest volume of transactions and design a sampling plan for substantive testing.
• B) Apply analytical procedures to areas that might be impacted by possible fraudulent activities.
• C) Interview employees to identify areas where the fraud could be occurring.
• D) Plan detailed tests of the areas that have the highest dollar amount of transactions.

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Definitions:

Doctors of Osteopathy

Medical professionals who practice a holistic approach to medicine, focusing on the entire body rather than just the symptoms of the disease.

Ophthalmologists

Medical doctors specialized in the diagnosis and treatment of disorders and diseases of the eye.

Dermatologists

Medical specialists focused on diagnosing and treating skin, hair, nail, and mucous membrane disorders.

Family Practitioners

Medical doctors who specialize in comprehensive healthcare for people of all ages, acting as primary care providers.