Consideration of Fraud in an Audit

question 69

Essay

Consideration of fraud in an audit.
Auditors are required to actively conduct a financial statement audit with the mindset that fraud may exist. What is the general process that an auditor goes through to assess the risk of fraud and test accordingly?

---

Definitions:

Evolutionary Perspective

A theoretical approach in psychology that seeks to explain mental and psychological traits as adaptations, i.e., as the functional products of natural selection.

Psychoanalytic Perspective

A theory of psychology founded by Sigmund Freud that emphasizes unconscious processes and childhood experiences as determinants of psychological development and issues.

Drive Reduction Theory

A theory that explains behavior as an attempt to reduce drives and achieve homeostasis.

Increases Drives

Refers to the process or condition that enhances the motivational state of an organism to achieve certain goals or satisfy needs.