Required information Chapter 04 Problem 4-31 LO 4-6, 4-9 [The following information applies to the questions displayed below.] Management fraud (e.g., fraudulent financial reporting) is a relatively rare event. However, when it does occur, the frauds (e.g., Enron and WorldCom) can have a significant effect on shareholders, employees, and other parties. The PCAOB'S AS 2401, Consideration of Fraud in a Financial Statement Audit, provides the relevant guidance for auditors. Chapter 04 Problem 4-31 Part c LO 4-6, 4-9 c. Select the items that are most likely to be objectives of the "brainstorming" meeting that is held among the engagement team members: Note: You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. ? Share insights about the entity and its environment and the entity's business risks. ?Provide an opportunity for the team members to discuss how and where the entity might be susceptible to fraud. ?Emphasize the importance of maintaining professional skepticism throughout the audit regarding the potential for material misstatement due to fraud. ?Discuss which client employees could be motivated to commit a fraudulent act based on the team's first impressions. ? Ensure that all engagement team members understand that it is their responsibility to ensure that all fraud is detected.
Required information Chapter 04 Problem 4-31 LO 4-6, 4-9 [The following information applies to the questions displayed below.] Management fraud (e.g., fraudulent financial reporting) is a relatively rare event. However, when it does occur, the frauds (e.g., Enron and WorldCom) can have a significant effect on shareholders, employees, and other parties. The PCAOB'S AS 2401, Consideration of Fraud in a Financial Statement Audit, provides the relevant guidance for auditors. Chapter 04 Problem 4-31 Part c LO 4-6, 4-9 c. Select the items that are most likely to be objectives of the "brainstorming" meeting that is held among the engagement team members: Note: You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. ? Share insights about the entity and its environment and the entity's business risks. ?Provide an opportunity for the team members to discuss how and where the entity might be susceptible to fraud. ?Emphasize the importance of maintaining professional skepticism throughout the audit regarding the potential for material misstatement due to fraud. ?Discuss which client employees could be motivated to commit a fraudulent act based on the team's first impressions. ? Ensure that all engagement team members understand that it is their responsibility to ensure that all fraud is detected.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Required information
Chapter 04 Problem 4-31 LO 4-6, 4-9
[The following information applies to the questions displayed below.]
Management fraud (e.g., fraudulent financial reporting) is a relatively rare event. However, when it does occur, the frauds
(e.g., Enron and WorldCom) can have a significant effect on shareholders, employees, and other parties. The PCAOB's AS
2401, Consideration of Fraud in a Financial Statement Audit, provides the relevant guidance for auditors.
Chapter 04 Problem 4-31 Part c LO 4-6, 4-9
c. Select the items that are most likely to be objectives of the "brainstorming" meeting that is held among the engagement team
members:
Note: You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct
answer and double click the box with the question mark to empty the box for a wrong answer.
?Share insights about the entity and its environment and the entity's business risks.
? Provide an opportunity for the team members to discuss how and where the entity might be susceptible to fraud.
?Emphasize the importance of maintaining professional skepticism throughout the audit regarding the potential for material misstatement
due to fraud.
? Discuss which client employees could be motivated to commit a fraudulent act based on the team's first impressions.
? Ensure that all engagement team members understand that it is their responsibility to ensure that all fraud is detected.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd8b2a8a8-df60-4d22-aaff-7005deaec9c2%2F2c3f0606-3401-4588-b726-c9882bcb00a5%2Fs3swlu_processed.jpeg&w=3840&q=75)
Transcribed Image Text:!
Required information
Chapter 04 Problem 4-31 LO 4-6, 4-9
[The following information applies to the questions displayed below.]
Management fraud (e.g., fraudulent financial reporting) is a relatively rare event. However, when it does occur, the frauds
(e.g., Enron and WorldCom) can have a significant effect on shareholders, employees, and other parties. The PCAOB's AS
2401, Consideration of Fraud in a Financial Statement Audit, provides the relevant guidance for auditors.
Chapter 04 Problem 4-31 Part c LO 4-6, 4-9
c. Select the items that are most likely to be objectives of the "brainstorming" meeting that is held among the engagement team
members:
Note: You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct
answer and double click the box with the question mark to empty the box for a wrong answer.
?Share insights about the entity and its environment and the entity's business risks.
? Provide an opportunity for the team members to discuss how and where the entity might be susceptible to fraud.
?Emphasize the importance of maintaining professional skepticism throughout the audit regarding the potential for material misstatement
due to fraud.
? Discuss which client employees could be motivated to commit a fraudulent act based on the team's first impressions.
? Ensure that all engagement team members understand that it is their responsibility to ensure that all fraud is detected.
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