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:

Respondent Behavior

Reactions that are automatic and involuntary, typically elicited by specific stimuli, contrasted with operant behavior, which is influenced by its consequences.

Extinguishable Behavior

A learned response that decreases in frequency or disappears when it is no longer reinforced in a behavioral psychology context.

Fixed-Interval

A schedule in operant conditioning where rewards (reinforcements) are given at fixed times, provided the correct response is made.

Continuous

Without pause or interruption; unending over time or space.