According to professional audit standards, how might an understanding of the nature of fraud that may occur in the client organization be identified by an audit firm?
A) Fraud training courses from actual corporate fraud ex-criminals.
B) Conducting a brainstorming session with the members of the audit team.
C) Circulating a survey to the client company employees for completion.
D) Discussions with other audit firms.

Question

Quizplus · Accepted Answer

Conducting a brainstorming session with the members of the audit team is a common and effective way of identifying the nature of fraud that may occur in the client organization. This approach leverages the knowledge and experience of the audit team to identify potential fraud risks and strategies for detection and prevention. The other options, such as fraud training courses, surveys, and discussions with other audit firms, may provide some additional insights, but they are not as direct and effective in identifying fraud risks within the client organization.

According to Professional Audit Standards, How Might an Understanding of the Nature