When planning the audit, the auditor must make enquiries of management. Which one of the following is not an appropriate enquiry of management about fraud? a.The auditor should ask management if they are personally engaged in fraudulent activity, including fraudulent financial reporting and misappropriation of assets. b.The auditor should ask about management's communications with employees about ethical behavior. c.The auditor should ask management about any communications with those charged with governance regarding its processes for identifying and responding to the risks of fraud in the entity. d.The auditor should ask management about their assessment of the risk that the financial statements may be materially misstated due to fraud.
When planning the audit, the auditor must make enquiries of management. Which one of the following is not an appropriate enquiry of management about fraud? a.The auditor should ask management if they are personally engaged in fraudulent activity, including fraudulent financial reporting and misappropriation of assets. b.The auditor should ask about management's communications with employees about ethical behavior. c.The auditor should ask management about any communications with those charged with governance regarding its processes for identifying and responding to the risks of fraud in the entity. d.The auditor should ask management about their assessment of the risk that the financial statements may be materially misstated due to fraud.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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When planning the audit, the auditor must make enquiries of management. Which one of the following is not an appropriate enquiry of management about fraud?
a.The auditor should ask management if they are personally engaged in fraudulent activity, including fraudulent financial reporting and misappropriation of assets.
b.The auditor should ask about management's communications with employees about ethical behavior.
c.The auditor should ask management about any communications with those charged with governance regarding its processes for identifying and responding to the risks of fraud in the entity.
d.The auditor should ask management about their assessment of the risk that the financial statements may be materially misstated due to fraud.
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