When assessing fraud risk,
A) fraud risk is assessed only at the overall financial statement level.
B) the auditor's assessment of fraud risk should be ongoing throughout the audit.
C) if the auditor concludes that there is a risk of material misstatement due to fraud, auditing standards require that the risks be treated as pervasive.
D) auditing standards require that the auditor presume there is a risk of fraud in the inventory account.

Question

Quizplus · Accepted Answer

The auditor's assessment of fraud risk is indeed an ongoing process throughout the audit. This approach allows auditors to adjust their focus and procedures as they gather more information and insights into the entity's operations, controls, and potential areas of vulnerability to fraud.

When Assessing Fraud Risk