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:

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded, typically downward-sloping due to the law of demand.

Surplus

The excess of supply over demand in a market, typically resulting in downward pressure on prices.

Nursing Wage Rate

The average hourly or annual pay that nurses receive, which can vary based on factors like geographic location, experience, and specialty.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price.