The Audit of Financial Statements Includes the Initial Approach of Addressing

question 67

Multiple Choice

The audit of financial statements includes the initial approach of addressing fraud.How must an auditor address fraud in the planning stage?

• A)The auditor must test for fraud in the planning stage by sampling accounts.
• B)The auditor must consider the likelihood of fraud existing in the company in the planning stage.
• C)The auditor must realize that most people are honest and not automatically assume that fraud exists when planning the audit.
• D)The auditor must not be aggressive in its initial approach to fraud as trust may be lost by the client.

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Definitions:

Economic Opportunities

The prospects within an economy for individuals to find employment, start businesses, and achieve financial success and advancement.

Ethical Beliefs

The set of moral principles or values that guide an individual's or society's behavior and choices.

Unionization

The process of organizing workers into unions to collectively bargain for better wages, benefits, and working conditions.

Public Employees

Individuals employed by government entities at the federal, state, or local level, including teachers, police officers, and public health workers.