Which of the Following Is Not Required by AU 240,"Consideration

question 64

Multiple Choice

Which of the following is not required by AU 240,"Consideration of Fraud in a Financial Statement Audit"?

• A)Conduct a continuing assessment of the risks of material misstatement due to fraud throughout the audit.
• B)Conduct a discussion by the audit team of the risks of material misstatement due to fraud.
• C)Conduct the audit with professional skepticism,which includes an attitude that assumes balances are incorrect until verified by the auditor.
• D)Conduct inquiries of shareholders as to their views about the risks of fraud and their knowledge of any fraud or suspected fraud.

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Definitions:

Dividends

Dividends refer to the distributions of a portion of a company's profits to its shareholders, made by the corporation.

Pledges Receivable

Commitments made by donors to give a specific amount of money to an organization over a set period, recognized as receivables in accounting.

Donation Revenue

Income received by a non-profit organization through voluntary financial contributions from individuals, corporations, or other entities.

Provision for Uncollectible Pledges

Provision for Uncollectible Pledges is a reserve or expense recognized by nonprofits or businesses for pledges or receivables that are likely not to be collected.