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:

Ninth Amendment

The Ninth Amendment to the United States Constitution addresses rights, retained by the people, that are not specifically enumerated in the Constitution.

Right to Privacy

A legal principle that protects individuals from unwarranted governmental intrusion into their personal and private affairs.

Due Process Standards

Legal principles ensuring fair treatment through the normal judicial system, especially as a citizen's entitlement.

Antiterrorism and Effective Death Penalty Act

A 1996 U.S. law that tightened the standards for habeas corpus, aimed at reducing terrorism and streamlining the death penalty process.