The audit team should conduct discussions to share insights from more experienced audit team members and to 'brainstorm' ideas that should address which of the following?
A) how assets of the entity could be misappropriated
B) how management could perpetrate and conceal fraudulent financial reporting
C) how the auditor might respond to the susceptibility of material misstatements due to fraud
D) all of the above

Question

Quizplus · Accepted Answer

The discussions should be aimed at addressing all of these areas as part of the fraud risk assessment process. The audit team should consider how assets could be misappropriated, how fraudulent financial reporting could occur, and how to respond to the susceptibility of material misstatements due to fraud. Collaboration and discussion among the audit team can help identify potential fraud risks and develop appropriate audit procedures to address them.

The Audit Team Should Conduct Discussions to Share Insights from More