How Must an Auditor Address Fraud in the Planning Stage

question 20

Multiple Choice

How must an auditor address fraud in the planning stage?

• A)The auditor must test for fraud in the planning stage by sampling accounts.
• B)The auditor must consider the likelihood of fraud existing in the company in the planning stage.
• C)The auditor must realize that most people are honest and not automatically assume that fraud exists when planning the audit.
• D)The auditor must not be aggressive in its initial approach to fraud,as trust may be lost by the client.

---

Definitions:

Sales Presentation

An organized effort by a salesperson to demonstrate a product or service to potential buyers, aiming to make a sale.

Prospect

An identified individual who may have an interest in a company's offerings, either a product or a service.

Event Planner

A professional responsible for organizing and coordinating all aspects of events, such as meetings, conferences, and social gatherings, ensuring they run smoothly.

Spontaneity

The quality of being unrehearsed or unpremeditated, often leading to genuine and immediate reactions or actions.