The following questions concern the auditor’s responses to thepossibility of fraud.a. When fraud risk factors are identified during an audit the auditor’s documentationshould includeThe Risk The Auditor’s Response toFactors Identified The Risk Factors Identified(1) Yes Yes(2) Yes No(3) No Yes(4) No No

Q: In connection with the audit of financial statements, an independent auditor could be responsible…

A: Option A is the correct answer.

Q: Which of the following statements are true a) The auditor has a responsibility to plan and perform…

A: Audit -  The audit is an independent examination of the financial information of an entity whether…

Q: Distinguish between fraudulent financial reporting and misappropriation of assets.

A: As per our guideline we provide solution to the one question but you have asked three different…

Q: Members of the audit engagement team are required to discuss the susceptibility of the entity's…

A: Audit frauds are conducted to hide the actual position of the financial statements of the company to…

Q: The essence of the audit function is to: Select one: a. Examine individual transactions so that…

A: Audit simply means to examine as to whether the financial statements of the entity are free from…

Q: What is the primary difference between fraud and error infinancial statement reporting?a. The…

A: Financial statements are those statements which are prepared at the end of the period for the review…

Q: When planning to perform an audit, an accountant must have a clear understanding of audit risk and…

A: Audit risk It is the risk that financial statements are materially incorrect, even though financial…

Q: Examining the implications of expectation gaps in the context of audit and assurance on fraud

A: Auditing means the inspection of financial accounts of the company to determine if the records are…

Q: What is the objectives for Internal Auditors in doing a fraud audit? Briefly explain.

A: Fraud Audit :     Any type of audit assures the risk of material misstatements and ensures the…

Q: What is the primary objective of the fraud brainstorming session?a. Determine audit risk and…

A: Brainstorming Session:   The brainstorming sessions are the ones in which critical audit areas are…

Q: What is the difference between Error and Fraud (as defined in auditing) and how shall the auditor…

A: Definition: Auditor: The auditor is an accounting professional hired by a company to review the…

Q: Which of the following internal control policies, when absent, would increase the opportunity for…

A: Note: As per the Bartleby guidelines we are required to solve a maximum of one question. Please post…

Q: The auditors have a responsibility to design the audit to provide reasonable assurance of detecting…

A: An audit is a process of checking and verifying the books of account and financial information of…

Q: John Wells, CPA, is planning the audit of CVG Services Inc. As a result of his risk assessment…

A: Events or situations that imply an incentive or motivation to conduct fraud or give a chance to…

Q: Which of the following types of audit evidence provides the least assurance of reliability?

A: Answer:   Option B

Q: susceptibility of fraud r

A: Option a is wrong because susceptibility denotes the possibility of fraud, not the occurrence of…

Q: 2. Whom should the auditors contact when they suspect a fraud? A. Either the senior management or…

A: Auditing means the independent checking of company operation by outsider. Auditor is  qualified and…

Q: TYPES OF FRAUD THAT AN AUDITOR TAKES INTO ACCOUNT WHEN DETERMINING THE RISK OF FRAUD?

A: A fraud audit is distinct from a financial statement audit carried out in compliance with GAAS. In…

Q: When obtaining an understanding of the entity and its environment, including its internal control,…

A: The audit of the financial statement is required to be conducted so as to ensure that the financial…

Q: In line with International Standards on Auditing (ISAs), which of the following are the overall…

A: INTERNATIONAL STANDARDS ON AUDITING (ISA) ARE PROFESSIONAL STANDARDS FOR THE AUDITING OF FINANCIAL…

Q: SAS No. 99 (now PCAOB AS 2401) states that the auditor has the responsibility to plan and perform…

A: Professional skepticism is the attitude of critically identifying and assessing the audit evidence

Q: Explain auditors’ responsibility for fraud risk assessment and define and explain the differences…

A: Fraud is an activity in a social environment with serious economic, corporate, and individual…

Q: WHAT ARE THE TWO TYPES OF FRAUD THAT AN AUDITOR TAKES INTO CONSIDERATION WHEN DETERMINING THE…

A: The auditor is responsible to check whether the financial statement gives a true and fair view of…

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: Accounting Which of the following statements is true regarding the identification and assessment of…

A: While undertaking audit for a client, auditor shall try to identify the potential areas of risk to…

Q: List two major characteristics that are useful in predicting the likelihood of fraudulent financial…

A: Audit: An audit is defined as: the independent examination of and expression of opinion on the…

Q: In a financial statement audit, inherent risk represents a. The risk that misstatements could occur…

A: In financial and managerial accounting, Inherent risk is that the risk expose by a slip-up or…

Q: whom should the auditors contact when they suspect a fraud? a. senior management b. audit…

A: Auditors are the persons who examine the financial statements of an entity to check the accuracy and…

Q: With respect to fraudulent financial reporting, which one of the following statements is not…

A: Auditor can obtain reasonable assurance only, not an absolute assurance.

Q: A lack of reasonable care that may be characterized by the failure of auditors to followGAAS in the…

A: Generally Accepted Auditing Standards (GAAS): Generally accepted auditing standards (GAAS) states…

Q: Explain why auditors usually emphasize the detection of fraud inthe audit of cash receipts. Is this…

A: The auditor focuses on cash as it is the very high liquid asset of the company, hence there is a…

Q: Which of the following statements is FALSE? A. Irregularities are intentional misrepresentations…

A: A. An accounting irregularity is an entry or statement that does not conform to the normal laws,…

Q: Define fraud and explain the two types of misstatements thatare relevant to auditors’ consideration…

A: Solution Introduction This question pertains to standard on auditing which deals with auditors…

Q: In forming the auditor’s opinion, the auditor is required to obtain reasonable assurance about…

A: Reasonable Assurance: When it comes to major misstatements, reasonable assurance is a high degree of…

Q: Write a memo to Mr Mika discussing the audit objectives and an auditor's responsibilities in…

A: Auditor's objectives regarding Fraud in an audit of financial statements : The primary objective of…

Q: See the "Madoff Securities" case for this question. Professional auditing standards discuss the…

A: GAAS are a set of principles that auditors follow while analyzing a company's financial records.…

Q: What are the objectives of audit risk assessment, and why is it important in assessing the…

A: Given: The objectives of audit risk assessments and the importance of its assessment.

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: The auditor faces a risk that the examination will not detect material misstatements in the…

A: Introduction: An auditor verifies the accuracy of videoed commercial transactions. Auditors must…

Q: (i) Differentiate between the audit strategy and the audit plan.

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Which two of the following characterize the work of fraud examiners?a. Analysis of control…

A: Audit: Audit is the process of verification of the compliance of the financial statements. It…

Q: Which of the following statements describes why a properly designed and executedaudit may not detect…

A: Auditing: Auditing is the process by which assertions made by management about financial…

Q: The risk of not detecting a misstatement resulting from fraud is greater than that resulting from…

A: Audit is the process of verifying books of accounts and financial statements of business and it…

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.