What Is the Best Way an Auditor Can Detect Fraud

question 92

Multiple Choice

What is the best way an auditor can detect fraud in the financial statements?

• A) Use professional skepticism.
• B) Understand Generally Accepted Accounting Standards.
• C) Brainstorm with the client to find the types of fraud occurring.
• D) Actively search for errors in the financial statements.

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Definitions:

External Capacity

The abilities and resources available to an organization from external sources that can be used to achieve its goals and objectives.

Strategic Issues

Key factors or challenges that could significantly impact an organization's ability to achieve its goals, requiring management's attention and strategic planning.

Customer Benefit

The advantage or value that a buyer gains from purchasing and using a product or service, which meets their needs or desires.

All-benefits Approach

A marketing strategy that emphasizes all the benefits of a product or service to appeal to a wide range of consumers.