Auditors Should Make Inquiries About Whether There Is Knowledge of Fraud

question 32

Multiple Choice

Auditors should make inquiries about whether there is knowledge of fraud in the company. Such inquiries should be made of:

• A) management.
• B) the audit committee.
• C) internal auditors.
• D) All of the above.

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Definitions:

Homeostatic Mechanism

A process by which biological systems maintain stability and balance in response to external changes.

Incentive

Something that motivates or encourages an individual to take action or to perform a behavior.

External Goal

An objective or target that an individual aims to achieve, which is set outside of themselves, such as career achievements or material possessions.

Motivate Behaviour

The process of influencing or stimulating an individual to act in a certain way or pursue particular goals.