SAS No 99 Lists Several Steps in Considering the Risk of of Fraud

question 22

Multiple Choice

SAS No. 99 lists several steps in considering the risk of fraud in a financial statement audit. All of the following are correctly stated except:

• A) Auditors must brainstorm with the key personnel of both the internal and independent audit teams to plan a strategy to detect fraud.
• B) Auditors must evaluate the audit evidence throughout the audit and respond to any identified misstatements.
• C) Auditors must determine the types of fraud risks that exist.
• D) Auditors are required to report all fraud to an appropriate level of management.

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Definitions:

Pulp Cavity

The central part of a tooth containing connective tissue, blood vessels, and nerves.

Dentin

Bony material forming the mass of the tooth.

Enamel

Hard substance covering the exposed portion of the tooth.

Salivary Amylase

An enzyme produced by the salivary glands that begins the digestion of starches into sugars in the mouth.