To Address Heightened Risks of Fraud, the Auditor Can Do

question 102

Multiple Choice

To address heightened risks of fraud, the auditor can do all of the following except

• A) use specialists to assist in evaluating the accuracy and reasonableness of management's key estimates.
• B) decrease the amount of substantive tests.
• C) use ACL or IDEA to search for fictitious revenue transactions.
• D) use EXCEL to perform analytical procedures at the disaggregated level.

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Definitions:

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, representing ownership interest in the company.

Brokerage Fee

A brokerage fee is a charge that a broker charges for the facilitation of transactions or services such as buying or selling stocks, real estate deals, or other financial services.

Dividend Per Share

The amount of dividend that a company pays out to each shareholder per share.

Trading Securities

Financial assets such as stocks and bonds held by an investor with the intent of selling them in the short term to profit from price fluctuations.