Auditors may identify conditions during fieldwork that change or support a judgment about the initial assessment of fraud risks.Which of the following is not a condition which should alert an auditor that the initial assessment should be changed?
A)The subsidiary ledger agrees to the general ledger.
B)Discrepancies in the accounting records
C)Unusual relationships between the auditor and management
D)Missing or conflicting evidence

Question

Quizplus · Accepted Answer

A subsidiary ledger agreeing to the general ledger is not a condition that would warrant a change in the initial assessment of fraud risks. The other options (discrepancies in accounting records, unusual relationships between auditor and management, and missing or conflicting evidence) are all conditions that could signal changes in fraud risks and would require further investigation and consideration by the auditor.

Auditors May Identify Conditions During Fieldwork That Change or Support