In Those Audits Where There Is a Heightened Risk of Fraud

question 59

Multiple Choice

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

• A)Search public records to identify debt.
• B)Vouch and trace loan proceeds and debt payments.
• C)Send confirmations to lenders and creditors,including confirmation of compliance with any debt covenants.
• D)Obtain photocopies of supporting documents.

---

Definitions:

Total Annual Cost

The sum of all expenses incurred by a business or operation over the course of a year.

Current System

The existing set of procedures, processes, technologies, and methods that are in use within an organization or system.

Finished-Goods Inventories

Stocks of completed products ready for sale or distribution to customers.

FedEx

An American multinational delivery services company known for its overnight shipping service and pioneering a system that could track packages and provide real-time updates on package location.