f the auditor believes that a misstatement is or might be intentional and the effect on the financial statements could be material or cannot be readily determined, the auditor should do which of the following?     Inquire of management as to the possibility of fraud     Discuss with the audit committee what shoud be done to prevent possible future misstatements.     Perform procedures to obtain additional evidence to determine whether fraud has occurred  or is likely to have occured.     None of the answers presented

Q: Why is it important for auditors to consider the possibility of fraud by employees or management on…

A: There is a possibility of the occurrence of fraud by the employees or management of the company.…

Q: Audit committee Audit plan Confirmation Cutoff Inherent risk Misappropriation of assets…

A: Here asked about the different aspect in the Audit Process and procedures which are involved with…

Q: ________ is an unintentional misstatement that can be found in a financial statement during the…

A: Mistakes can either be intentional or unintentional. When such mistakes are not made on purpose or…

Q: The FBI employs deception to collect information during its investigations. Do you believe it is…

A: In the context of auditing, deception refers to the use of false or misleading information or…

Q: Financial audit Q&A What is the risk that arises because the auditor is unable to find misstatements…

A:

Q: If an auditor believes that a misstatement might be intentional and the effect on the financial…

A: c) If the auditors prepare the procedure and if check whether the fraud have taken place or going to…

Q: of these two tasks is one of the major responsibilities of an auditor regarding the audited…

A: The Audit is said to be the process over there is an independent examination finance statement of…

Q: Reed, CPA, accepted an engagement to audit the financial statements of Smith Company. Reed's…

A: a. Responsibilities to Detect Errors and Fraud:Reed, as the auditor, has the responsibility to plan…

Q: As an auditor, you run across some abnormalities in a company’s books. What you find, makes you a…

A: An Auditor’s report is a letter by auditor in which information containing that company’s financial…

Q: Select the correct answer(s) for the following multiple choice questions. Note that there may be…

A: SAS No.99: SAS No.99 stands for Statement on Auditing Standards No.99: Consideration of Fraud. It is…

Q: ISA 240 the Auditor’s responsibilities relating to Fraud in an audit of financial statements,…

A: Part (i): The purpose is what distinguishes fraud from error. In s imple terms, fraud is a…

Q: An auditor's engagement letter most likely would include a statement regardıng: 1. Conditions under…

A: Auditing involves an independent examination of financial records of an entity with a view to…

Q: Discussion Question 37:  Explain why Benford's Law is useful to auditors in the detection of fraud.…

A: Benford's Law, also known as the "first-digit law," is a statistical principle that states that in…

Q: A transaction level internal control activity is best described as:     An action taken by…

A: A transaction-level internal control activity can be labeled as action taken by customer personnel…

Q: Which analytical procedures are most important in verifying notes payable? Which types of…

A: It refers to the evaluation of financial information via identifying and analyzing of plausible…

Q: QUESTION 22 Match the term on the left with the appropriate definition or description on the left.…

A: An audit is when an auditor examines or inspects numerous accounting records, accompanied by a…

Q: What is the ethical value of applying the Fraud Triangle to assess the risk of material…

A: Fraud Triangle:   A fraud triangle refers to a framework that is used in auditing to explain the…

Q: Question 30 If the auditor plans to assess control risk at less than the maximum and rely on…

A: Introduction:- The auditor intends to evaluate audit risks at a reduced level than highest and…

Q: The following questions concern the auditor’s responses to thepossibility of fraud.a. When fraud…

A: Auditor's responses should focus on how the groups will obtain will acquire proof to lessen the…

Q: 3. Fraud is an _____________ misstatement of which any amount found during the audit will be…

A: Fraud refers to the intentionally deceptive action which is designed for providing the perpetrator…

Fraud

Fraud in accounting is the planned manipulation of financial documents to make a false appearance of corporate financial health. Moreover, it includes an employee, accountant, or the company itself misleading investors and shareholders.