To address heightened risks of fraud, the auditor can do all of the following except
A) use specialists to assist in evaluating the accuracy and reasonableness of management's key estimates.
B) decrease the amount of substantive tests.
C) use ACL or IDEA to search for fictitious revenue transactions.
D) use EXCEL to perform analytical procedures at the disaggregated level.

Question

Quizplus · Accepted Answer

Decreasing the amount of substantive tests will not address the heightened risks of fraud. In fact, it may increase the risk of fraud going undetected. The other options (using specialists, using ACL or IDEA, using EXCEL) are effective ways for the auditor to address the heightened risks of fraud.

To Address Heightened Risks of Fraud, the Auditor Can Do