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

Question

Quizplus · Accepted Answer

The best way an auditor can detect fraud in the financial statements is by using professional skepticism. This means having a questioning mind, being alert to any irregularities, and considering the possibility of fraud throughout the audit. It involves examining the financial statements with a critical eye, looking for inconsistencies and checking for evidence supporting the numbers reported. This approach can help the auditor identify potential signs of fraud that may have been missed otherwise.

What Is the Best Way an Auditor Can Detect Fraud