The Auditor's Assessment of Fraud Is Part of His Assessment

question 46

Multiple Choice

The auditor's assessment of fraud is part of his assessment of the risk of material misstatement.If the risk of fraud is high,

• A)the auditor may obtain evidence that is more relevant
• B)the auditor may obtain additional evidence from individuals who might be involved in the fraud
• C)the auditor may obtain evidence that is more reliable
• D)the auditor may obtain evidence that is more accurate
• E)the auditor may obtain evidence from independent sources
• F)both A and B
• G)both A and C
• H)Both C and E

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Definitions:

Shuttle Service

A shuttle service is a public or private transport service that offers frequent trips between two fixed points, often used in airport or hotel transfers.

Fly By Night

A term describing businesses or individuals that appear transient, unreliable, or not committed to long-term obligations.

Output Levels

The quantity of goods or services produced by a company or an economic system within a specific period.

Fixed Cost

Costs that do not vary with the level of output or sales, such as rent, salaries, and insurance premiums.