Which of the Following Factors Should an Auditor Consider in Evaluating

question 21

Multiple Choice

Which of the following factors should an auditor consider in evaluating the effect of fraud upon the planned audit procedures?

• A)The type of fraud that may occur.
• B)The potential materiality of fraud.
• C)The likelihood of fraud occurring.
• D)All of the above.

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Definitions:

Monte Carlo Simulation

A computational algorithm that relies on repeated random sampling to obtain numerical results, often used to model probabilities of different outcomes in a complex system.

Random Numbers

A sequence of numbers or symbols that cannot be reasonably predicted better than by a random chance, often used in simulations and statistical sampling.