According to Professional Audit Standards,how Might Auditors Gain an Understanding

question 49

Multiple Choice

According to professional audit standards,how might auditors gain an understanding of the nature of fraud that may occur in the client organization?

• A)Fraud training courses from actual corporate fraud ex-criminals.
• B)Conducting a brainstorming session with the members of the audit team.
• C)Circulating a survey to the client company employees for completion.
• D)Discussions with other audit firms.

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Definitions:

Compounded Semiannually

Interest calculation method where interest is added to the principal sum twice a year, leading to interest on interest.

Strip Bond

A type of bond where both the principal and regular coupon payments have been separated and are sold individually.

Compounded Quarterly

A method where interest is calculated and added to the principal every three months.

Average Annual Rate

An average percentage that represents the compounded annual growth rate of an investment over a specified time frame.