The Auditor Can Respond to an Increased Risk of Fraud

question 24

Multiple Choice

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

• A) Evaluating whether the accounting policies selected may be indicative of fraudulent financial reporting through earnings management.
• B) Assigning more experienced personnel to the audit.
• C) Increasing detection risk.
• D) Taking steps to obtain more reliable evidence.

---

Definitions:

Meals a Year

A term referring to the total number of meals consumed or provided over the course of a year.

Indirect Quotations

Statements that report what someone has said without using the person's exact words, typically introduced by a phrase like "he said that" or "she believes that."

Direct Quotations

The exact words spoken or written by someone else, enclosed in quotation marks.

Quotation Marks

Symbols used in writing to indicate the beginning and end of someone else's words.