What is the best way an auditor can detect fraud in the financial statements?
A)Actively search for errors in the financial statements.
B)Understand Generally Accepted Accounting Standards.
C)Brainstorm with the client to find the types of fraud occurring.
D)Use professional skepticism.

Question

Quizplus · Accepted Answer

The best way an auditor can detect fraud in the financial statements is by using professional skepticism. Professional skepticism is an attitude that includes a questioning mind and a critical assessment of audit evidence. This approach enables the auditor to consider the possibility of fraud when designing and performing audit procedures. By maintaining a skeptical attitude, the auditor is more likely to identify and investigate areas of the financial statements that may be susceptible to fraud.

What Is the Best Way an Auditor Can Detect Fraud