Which of the Following Questions Is the Auditor Not Required

question 41

Multiple Choice

Which of the following questions is the auditor not required to ask company management when assessing fraud risk?

• A)Does management have knowledge of any fraud or suspected fraud within the company?
• B)What are the nature of the fraud risks identified by management?
• C)Is management using all assets effectively?
• D)What internal controls have been implemented to address the fraud risks?

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Definitions:

Unemployment

The state of being without a job despite actively looking for work, often used as a key economic indicator.

Output Growth

The increase in the amount of goods or services produced by an economy over a period.

Production Possibilities Curve

A graphical representation showing the maximum number of goods or services that can be produced in an economy given available resources and technology.

Scarce Goods

Items that are limited in availability compared to the desires of people to possess them, requiring mechanisms like pricing or rationing to distribute them.