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 with 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

The subsidiary ledger agreeing with the general ledger would not necessarily warrant a change in the initial assessment of fraud risks, as it is a normal expectation in a company's accounting records. However, discrepancies in the accounting records, unusual relationships between the auditor and management, and missing or conflicting evidence could indicate the need for a reassessment of fraud risks.

Auditors May Identify Conditions During Fieldwork That Change or Support