The Auditor Can Respond to an Increased Risk of Fraud

question 20

Multiple Choice

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

• A) increasing professional scepticism.
• B) assigning more experienced personnel to the audit.
• C) increasing acceptable audit risk.
• D) taking steps to obtain more reliable evidence.

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Definitions:

Ego

Part of Sigmund Freud's model of the psyche, the ego represents the realistic part that mediates between the desires of the id, the demands of the environment, and the moral standards of the superego.

Superego

A component of Sigmund Freud's psychoanalytic theory representing the ethical or moral self, which contains societal standards, ideals, and prohibitions.

Defence Mechanism

Psychological strategies employed by the unconscious mind to protect itself from anxiety by distorting reality.

Sublimation

A defense mechanism proposed by Freud in which socially unacceptable impulses or idealizations are transformed into socially acceptable actions or behavior.