Auditors May Identify Conditions During Fieldwork That Change or Support

question 26

Multiple Choice

Auditors may identify conditions during fieldwork that change or support a judgment about the initial assessment of fraud risks. Which of the following is not a condition which should alert an auditor that the initial assessment should be changed?

• A) preliminary assessment of control risk has been modified
• B) discrepancies in the accounting records
• C) unusual relationships between the auditor and management
• D) missing or conflicting evidence

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Definitions:

Internal Dispositions

Traits, motivations, and personality characteristics believed to reside within an individual and influence behavior.

Negative Outgroup Actions

Behaviors or actions taken against a group considered as "them" or outside one's own group, often leading to conflict or discrimination.

Anonymity

The state of being anonymous, where an individual's identity is unknown or concealed.

Greed

An intense and selfish desire for something, especially wealth, power, or food, often at the expense of others.