Auditors Must Assess Fraud Risk on Every Audit and Respond

question 66

Multiple Choice

Auditors must assess fraud risk on every audit and respond to the risks that are identified.Which of the following is not a procedure required to further address the fraud risk of management override of internal control?

• A)Reviewing accounting estimates for biases.
• B)Examining physical controls over assets.
• C)Evaluating the business rationale for significant unusual transactions.
• D)Examining journal entries and other adjustments for evidence of fraud.

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Definitions:

Incompatible

Elements or factors that are unable to exist or work together harmoniously due to differences or conflicting characteristics.

Dialectical

Relating to the logical discussion of ideas and opinions, especially in philosophy, aiming at the resolution of contradictions.

Inherently Unproductive

Describing activities or processes that do not contribute to the desired outcome or productivity by their very nature.

Healthy Relationships

Interactions characterized by mutual respect, trust, support, and good communication between individuals.