Problem

(Objective 6-3) List two major characteristics that are useful in predicting the likelihoo...

(Objective 6-3) List two major characteristics that are useful in predicting the likelihood of fraudulent financial reporting in an audit. For each of the characteristics, state two things that the auditor can do to evaluate its significance in the engagement.

Objective 6-3

Explain the auditor’s responsibility for discovering material misstatements due to fraud or error, and the need to maintain professional skepticism when conducting the audit.

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