What Is the Best Method an Auditor May Use to Detect

question 23

Multiple Choice

What is the best method an auditor may use to detect fraud in the financial statements of clients?

• A)Use professional skepticism.
• B)Understand and properly apply Generally Accepted Accounting Standards.
• C)Brainstorm with the client to find the types of fraud occurring.
• D)Actively search for all errors in the financial statements.

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Definitions:

Supply Price

The minimum price at which a producer is willing to sell a given quantity of a good or service.

Doughnuts

A type of fried dough confection or dessert food, usually sweet, with a hole in the middle or filled with various sweet fillings.

Binding Minimum Wage

A legally established minimum wage that is high enough to affect the labor market by setting a floor on wages that employers can pay their employees.

Unemployment

The state of being jobless and actively looking for work but unable to find employment.