When auditing with “fraud awareness,” auditors should especially notice and reviewemployee activities under which of these conditions?a. The company always estimates the inventory but never takes a complete physical count.b. The petty cash box is always locked in the desk of the custodian.c. Management has published a company code of ethics and sends frequent communicationnewsletters about it.d. The board of directors reviews and approves all investment transactions
When auditing with “fraud awareness,” auditors should especially notice and reviewemployee activities under which of these conditions?a. The company always estimates the inventory but never takes a complete physical count.b. The petty cash box is always locked in the desk of the custodian.c. Management has published a company code of ethics and sends frequent communicationnewsletters about it.d. The board of directors reviews and approves all investment transactions
Chapter2: Audits Of High-risk Accounts
Section2.7: Bankrate, Inc.
Problem 1Q
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When auditing with “fraud awareness,” auditors should especially notice and review
employee activities under which of these conditions?
a. The company always estimates the inventory but never takes a complete physical count.
b. The petty cash box is always locked in the desk of the custodian.
c. Management has published a company code of ethics and sends frequent communication
newsletters about it.
d. The board of directors reviews and approves all investment transactions
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