The Auditor Can Respond to an Increased Risk of Fraud

question 12

Multiple Choice

The auditor can respond to an increased risk of fraud by doing all of the following except:

• A)evaluating whether the accounting policies selected may be indicative of fraudulent financial reporting through earnings management.
• B)assigning more experienced personnel to the audit.
• C)increasing detection risk.
• D)taking steps to obtain more reliable evidence.

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Definitions:

Surgical Site Infections

Infections that occur after surgery in the part of the body where the surgery took place, posing significant risks to patient recovery.

National Average

The arithmetic mean of a set of values or measurements taken across a nation, often used to describe the general state of a measurable factor like income, education level, or health outcomes.

Margin of Error

The range of values above and below the sample statistic in a confidence interval, often used to indicate the precision of an estimate.

Sampling Variability

The variation of sample statistics from sample to sample, due to the random selection of samples from the population.