When auditing for fraud the auditors should do all of the following except:
A) consider any unusual or unexpected relationships that have been identified in performing analytical procedures.
B) conduct a brainstorming session to discuss the risk of fraud.
C) only investigate areas where all three fraud risk factors are present.
D) examine journal entries and other adjustments for evidence of possible material fraud.

Question

Quizplus · Accepted Answer

Auditors should investigate areas where there is a significant risk of fraud, which does not necessarily require the presence of all three fraud risk factors (incentive/pressure, opportunity, and rationalization). It's important to assess and investigate any area with potential fraud risk, even if not all factors are present.

When Auditing for Fraud the Auditors Should Do All of the Following