A Good Reason for Involving Fraud Auditors in the Planning

question 31

Multiple Choice

A good reason for involving fraud auditors in the planning of a regular audit of financial statements is _______.

• A)when there are many fraud risk factors
• B)when the audit committee authorizes further investigation
• C)it makes the client aware of how seriously the auditor takes its fraud detection responsibility
• D)it improves the documentation standards of the financial statement audit

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Definitions:

Causality

The relationship between cause and effect, where one event (the cause) directly leads to the outcome (the effect).

Experiments

Scientific procedures undertaken to discover, test, or demonstrate a hypothesis or to determine the efficacy of something previously untried.

Survey Studies

Research methodologies that collect data from a specific population sample via questionnaires or interviews to analyze trends, attitudes, or behaviors.

Dyadic Relationships

Interactions or connections that occur between two individuals, often studied in psychology and sociology to understand human behavior.