Which of the following actions by the company auditor increases the potential to detect fraud?
A) Comparing current procedure test results to a prior year
B) Performing new procedures not conducted in prior years
C) Assigning the same audit staff to the audit from year to year
D) Carefully checking the audit test results

Question

Quizplus · Accepted Answer

Performing new procedures not conducted in prior years increases the likelihood of detecting fraud as it introduces new methods of uncovering fraud that may not have been previously used. Comparing current procedure test results to a prior year (A) and carefully checking the audit test results (D) are standard audit procedures that may not necessarily increase the potential to detect fraud. Assigning the same audit staff to the audit from year to year (C) may provide consistency and familiarity with the client, but it does not guarantee an increased potential to detect fraud.

Which of the Following Actions by the Company Auditor Increases