7.Which of the following factors is used by the audit team to assess the risk of...
7.Which of the following factors is used by the audit team to assess the risk of fraud?
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A. Pressure and opportunities for management to commit forgery |
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B. Inclusion of elements of unpredictability |
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C. Misappropriation of assets |
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D. Modification of planned audit procedures |
Homework Answers
OPTION A: Pressure and opportunities for management to commit forgery
EXPLANATION:
When assessing the risk of fraud, auditor is interested in knowing If there is existence of pressures and opportunities which may force or induce management to commit fraud
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