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:

Myelination

The process by which axons of nerve cells are coated with myelin, a fatty substance that speeds up the transmission of nerve impulses.

Demyelination

A pathological condition in which the myelin sheath covering nerve fibers is damaged, impairing the conduction of electrical signals in the nervous system.

Motor Pathways

Neural pathways that transmit impulses from the brain to control movements in the body.

Medulla

An area of the brainstem responsible for regulating vital functions, including breathing, heart rate, and blood pressure.