When Assessing Fraud Risk

question 121

Multiple Choice

When assessing fraud risk,

• A) fraud risk is assessed only at the overall financial statement level.
• B) the auditor's assessment of fraud risk should be ongoing throughout the audit.
• C) if the auditor concludes that there is a risk of material misstatement due to fraud, auditing standards require that the risks be treated as pervasive.
• D) auditing standards require that the auditor presume there is a risk of fraud in the inventory account.

---

Definitions:

Genetic Counseling

A service that involves evaluating and advising individuals and families on the genetic aspects of diseases, including the risk of inheriting or passing on conditions.

Heritability

A measure of how much of the variation in a trait within a population can be attributed to genetic differences among individuals in that population.

Single-gene Disorders

Genetic disorders caused by mutations in a single gene, affecting how a particular protein is made or functions, leading to various health problems.

Recessive

A term used in genetics to describe a trait or gene that is only expressed when two copies of it are present, one from each parent, as it is masked by the presence of a dominant trait when only one copy is present.