What Should an Audit Team Do When It Discovers That

question 54

Multiple Choice

What should an audit team do when it discovers that fraud risk factors are present on an audit engagement?

• A)Withdraw from the engagement and inform regulatory bodies.
• B)Modify procedures to actively search for the existence of fraud.
• C)Reduce the amount of evidence required and resort to management inquiry.
• D)Turn the audit over to forensic accountants.

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Definitions:

God Archetype

In Jungian psychology, a representation of the universal symbols or motifs that arise from the collective unconscious, embodying aspects of authority, power, and protection.

Erik Erikson

A developmental psychologist known for his theory on the psychosocial development of human beings.

Ego Psychology

A school of psychoanalytic thought that focuses on the ego's role in dealing with reality, defense mechanisms, and maintaining mental health.

Karen Horney

A German psychoanalyst known for her theories on neurosis, personality development, and the concept of basic anxiety.