Problem

Which of the following is a specific procedural response to a particular fraud risk in an...

Which of the following is a specific procedural response to a particular fraud risk in an account balance or class of transactions?

A. Exercising more professional skepticism.

B. Carefully avoiding conducting interviews with people in the fraud-rich areas.

C. Performing procedures such as inventory observation and cash counts on a surprise or unannounced basis.

D. Studying management’s selection and application of accounting principles more carefully.

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