According to Professional Audit Standards,how Might an Understanding of the Nature

question 41

Multiple Choice

According to professional audit standards,how might an understanding of the nature of fraud that may occur in the client organization best be identified by the audit firm?

• A)Fraud training courses from actual corporate fraud ex-criminals.
• B)Conducting a brainstorming meeting with the members of the audit team.
• C)Circulating a survey to the client company employees for completion.
• D)Discussions with other CPA firms.

---

Definitions:

Total Cost Assigned

The sum of all direct and indirect costs allocated to a specific product, project, or department.

Time-Driven Activity-Based Costing

A costing method that assigns costs based on the actual amount of time resources are used in business activities, improving cost accuracy.

Customer Support Department

A division within a company focused on assisting customers with their queries, problems, or complaints.

Number of Employees

The total count of individuals working for a company or organization, either on a full-time or part-time basis.