Which of the following is not an acceptable response to fraud risks related to sales that were identified in an audit?
A)Exercise professional skepticism when performing sales testing.
B)Increase the assessment of control risk for sales.
C)Increase the assessment of detection risk for sales.
D)Perform additional substantive sales procedures on a surprise basis.

Question

Quizplus · Accepted Answer

Increasing the assessment of detection risk for sales is not an acceptable response to fraud risks identified in an audit. Detection risk relates to the risk that auditors will not detect a material misstatement. In response to fraud risks, auditors should aim to reduce detection risk, not increase it, by enhancing their audit procedures.

Which of the Following Is Not an Acceptable Response to Fraud