During the first phase of an audit, a CPA most likely would:
A)identify specific internal control activities that are likely to prevent fraud.
B)evaluate the reasonableness of the company's accounting estimates.
C)evaluate the integrity of management.
D)inquire of the company's attorney as to whether any unrecorded claims are probable or asserted.

Question

Quizplus · Accepted Answer

During the first phase of an audit, the CPA would typically evaluate the integrity of management to assess the risk of fraudulent financial reporting or misappropriation of assets. This includes obtaining an understanding of the control environment and identifying any risk factors or potential incentives for fraud. Options A, B, and D may be part of later phases of the audit, but are not typically performed in the initial risk assessment phase.

During the First Phase of an Audit, a CPA Most