Because Fraud Perpetrators Are Often Knowledgeable About Audit Procedures, SAS

question 17

True/False

Because fraud perpetrators are often knowledgeable about audit procedures, SAS No. 99 requires auditors to incorporate unpredictability into the audit plan.

---

Definitions:

Managed Investment Companies

Firms that invest pooled funds from clients, taking on the responsibility of investment decisions and management for those funds.

Closed-end Funds

Investment funds that have a fixed number of shares which are not redeemable from the fund. Instead, the shares can be purchased or sold only in the market, at their current market price.

Unit Investment Trusts

An investment company offering a fixed portfolio of securities in a one-time public offering, with units redeemable on demand.

Short-selling

The practice of selling securities or other financial instruments that are not currently owned, with the intention of repurchasing them later at a lower price.