The Fraud Discussion May Include the Following Elements

question 10

Multiple Choice

The fraud discussion may include the following elements

• A)a discussion of auditor's involvement in supervising employees with access to cash or other assets susceptible to misappropriation
• B)a consideration of unusual or unexplained changes in the behavior or lifestyle of employees that have come to the attention of management
• C)a consideration of the types of circumstances that might indicate the possibility of fraud
• D)a discussion of how an element of unpredictability will be built into the nature,timing,and extent of audit procedures
• E)a discussion of any allegations of fraud that have come to the attention of management
• F)both A and B
• G)both C and D
• H)both C and E

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Definitions:

Cash Flow

The overall balance of cash flowing in and out of a business, crucially impacting its quick liquidity.

Creditors

Entities (people or institutions) to whom money is owed by the business for goods or services that have been delivered or used but not yet paid for.

Stockholders

Individuals or entities that own shares in a corporation, giving them ownership interest.

Cash Flow

The entire monetary cycle within and outside a corporation, importantly determining its instant financial stability.