How Must an Auditor Address Fraud in the Planning Stage

question 20

Multiple Choice

How must an auditor address fraud in the planning stage?

• A)The auditor must test for fraud in the planning stage by sampling accounts.
• B)The auditor must consider the likelihood of fraud existing in the company in the planning stage.
• C)The auditor must realize that most people are honest and not automatically assume that fraud exists when planning the audit.
• D)The auditor must not be aggressive in its initial approach to fraud,as trust may be lost by the client.

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Definitions:

Neutron

A subatomic particle found in the nucleus of an atom that has no electrical charge and a mass slightly larger than that of a proton.

Medial

Positioned towards the midline of the body.

Pod/o

A prefix related to feet, utilized in medical terminology to describe conditions, procedures, or anatomical parts concerning the foot.

Bucc/o

A combining form used in medical terminology meaning cheek, relating to the cheek area.