In Those Audits Where There Is a Heightened Risk of Fraud

question 12

Multiple Choice

In those audits where there is a heightened risk of fraud related to stockholders' equity accounts,which of the following will the auditor typically not perform?

• A)Confirm terms of equity arrangements and shares held directly with shareholders.
• B)Account for and vouch all proceeds from stock issues.
• C)Confirm with shareholders whether there are any side agreements.
• D)Review equity authorizations in the board meeting minutes.

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Definitions:

Logical Conclusion

The final part of an argument or process, derived through reasoning from the premises or evidence presented.

Digital Information Fluency

The ability to find, evaluate, and use digital information effectively, critically, and ethically.

Organizational Problems

Issues or challenges within a company or organization that affect its efficiency, effectiveness, and productivity.

Information Flow

The movement and exchange of information within an organization or between entities.