The Center for Audit Quality (CAQ) report identifies which of the following ways in which individuals involved in the financial reporting process can mitigate the risk of fraudulent financial reporting?
A) Individuals involved in financial reporting need to acknowledge that there needs to exist a strong, highly ethical tone at the top of an organization that permeates the corporate culture, including an effective fraud risk management program.
B) Individuals involved in financial reporting need to continually exercise professional skepticism.
C) Individuals involved in financial reporting need to remember that strong communication among those involved in the financial reporting process is critical.
D) All of the above.

Question

Quizplus · Accepted Answer

All of the above options are identified by the Center for Audit Quality (CAQ) report as ways for individuals involved in the financial reporting process to mitigate the risk of fraudulent financial reporting. Acknowledging the need for a strong ethical tone at the top, exercising professional skepticism, and maintaining strong communication can all contribute to reducing the likelihood of fraudulent reporting.

The Center for Audit Quality (CAQ) Report Identifies Which of the Following