When Assessing the Risk for Fraud, the Auditor Must Be

question 12

Multiple Choice

When assessing the risk for fraud, the auditor must be cognizant of the fact that

• A) the existence of fraud risk factors means fraud exists.
• B) analytical procedures must be performed on revenue accounts.
• C) horizontal analysis is not useful in helping to determine unusual financial statement relationships.
• D) the auditor cannot make inquiries about fraud to company personnel who have no financial statement responsibilities.

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Definitions:

Litter Box

A container filled with absorbent material, such as sand or clay, used for the collection of urine and feces by cats and some other pets.

Conditioned Stimulus

A stimulus that, through association with an unconditioned stimulus, comes to produce a conditioned response.

Leash

A length of rope, chain, or material designed to control or lead an animal, typically attached to a collar.

Closet

A small enclosed space, typically in a room or building, used for storage, particularly of clothes.