A Good Reason for Involving Fraud Auditors in the Planning

question 11

Multiple Choice

A good reason for involving fraud auditors in the planning of a regular audit of financial statements is ________.

• A)it reduces the auditor's potential legal liability
• B)when the audit committee authorizes further investigation
• C)it makes the client aware of how seriously the auditor takes its fraud detection responsibility
• D)it improves the documentation standards of the financial statement audit

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Definitions:

Rate of Return

A positive or negative variation in an investment’s worth over a set schedule, expressed as a percentage of what the investment initially cost.

Rate of Interest

The percentage charged on a loan or paid on savings over a period of time, indicating the cost of borrowing or the gain on savings.

Invested

Refers to funds that have been allocated into assets or projects with the expectation of earning a return.