If significant fraud risk exists, the auditors should _______.
A)respond by including elements of predictability in their audit plan
B)respond by including elements of unpredictability in their audit plan
C)plan to place greater reliance on the internal audit function
D)be able to place greater reliance on management assertions

Question

Quizplus · Accepted Answer

When significant fraud risk exists, auditors should respond by including elements of unpredictability in their audit plan. This helps to deter potential fraudsters and increases the likelihood of detecting any fraudulent activities that may have occurred. Adding unpredictable audit procedures, such as unexpected inventory counts or surprise observations, can help uncover fraud that may be missed with more routine procedures.

If Significant Fraud Risk Exists, the Auditors Should _______