Auditors May Identify Conditions During Fieldwork That Change or Support

question 38

Multiple Choice

Auditors may identify conditions during fieldwork that change or support a judgment about the initial assessment of fraud risks.Which of the following is not a condition which should alert an auditor that the initial assessment should be changed?

• A)The subsidiary ledger agrees to the general ledger.
• B)Discrepancies in the accounting records
• C)Unusual relationships between the auditor and management
• D)Missing or conflicting evidence

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Definitions:

Criminal Law

The body of law that pertains to crime and punishment, dealing with acts considered harmful or threatening to a society's welfare.

Involuntarily Committed

The legal process by which individuals with severe mental illness are placed into a treatment facility without their consent.

Serious Bodily Harm

A legal term referring to injury that creates a substantial risk of death or causes permanent disfigurement or protracted loss or impairment of the function of any bodily member or organ.

Involuntary Hospitalization

The act of admitting an individual to a psychiatric facility without their consent, typically because they are deemed a danger to themselves or others.