When assessing the risk for fraud, the auditor must be cognizant of the fact that
A) the existence of fraud risk factors means fraud exists.
B) analytical procedures must be performed on revenue accounts.
C) horizontal analysis is not useful in helping to determine unusual financial statement relationships.
D) the auditor cannot make inquiries about fraud to company personnel who have no financial statement responsibilities.

Question

Quizplus · Accepted Answer

Analytical procedures, including those performed on revenue accounts, are a standard part of the audit process to identify unusual transactions or trends that might indicate the risk of material misstatement due to fraud or error.

When Assessing the Risk for Fraud, the Auditor Must Be