The Auditor Can Respond to an Increased Risk of Fraud

question 52

Multiple Choice

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

• A) Heavily emphasizing the importance of professional skepticism.
• 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:

Ethnocentrism

The tendency to believe that one's own culture or ethnic group is superior to others, which can lead to biased judgments and interactions with people from different backgrounds.

Cultural Preference

Refers to the predispositions and choices influenced by an individual's cultural background, affecting various aspects of behavior and decision-making.

Superior

An individual who holds a higher position or rank, often having authority over others within an organizational hierarchy.

Discomfort

a mild state of physical or psychological unease, often less intense than pain or distress, potentially caused by discomforting environment, situation, or stimulation.