What Should an Audit Team Do When It Discovers That

question 64

Multiple Choice

What should an audit team do when it discovers that fraud risk factors are present on an audit engagement?

• A) Retract from the client and inform regulatory bodies.
• B) Modify procedures to actively search for the existence of fraud.
• C) Reduce the amount of evidence required and resort to management inquiry.
• D) Turn the audit over to forensic accountants.