When planning an audit engagement, what should an internal auditor first consider when assessing the risk of fraud in the area to be audited?
A) Impact of and exposure to fraud.
B) Existence of evidence of fraud.
C) Organizational structure.
D) Management's risk appetite.

Question

Quizplus · Accepted Answer

The internal auditor should first consider the impact of and exposure to fraud to understand the potential consequences and likelihood of fraud occurring in the area being audited. This helps in prioritizing audit efforts and resources effectively.

When Planning an Audit Engagement, What Should an Internal Auditor