In evaluating the effect of fraud upon the audit procedures the auditor should consider
A)The type of fraud that may occur.
B)The potential significance of fraud.
C)The likelihood of fraud occurring.
D)The pervasiveness of fraud detected.
E)All of the above.

Question

Quizplus · Accepted Answer

All of the above factors should be considered when evaluating the effect of fraud on audit procedures. The type of fraud and the potential significance of fraud will determine which audit procedures are necessary to detect it, while the likelihood of fraud occurring will affect the extent of those procedures. The pervasiveness of fraud detected will also inform the auditor's overall assessment of the risk of material misstatement due to fraud.

In Evaluating the Effect of Fraud Upon the Audit Procedures