Targeted Fraud Risk Assessment Is Consistent with the PCAOB's Auditing

question 29

Multiple Choice

Targeted fraud risk assessment is consistent with the PCAOB's Auditing Standard No. 5 AS5 which:

• A) requires a top down approach.
• B) requires the audit team to hold a brainstorming session at the beginning of each investigation to determine who has the ability to commit the potential fraud.
• C) requires the board of directors to review the internal controls of the entity when fraud of a material amount is detected.
• D) requires the audit committee report directly to the independent auditor.