The fraud discussion may include the following elements
A)a discussion of auditor's involvement in supervising employees with access to cash or other assets susceptible to misappropriation
B)a consideration of unusual or unexplained changes in the behavior or lifestyle of employees that have come to the attention of management
C)a consideration of the types of circumstances that might indicate the possibility of fraud
D)a discussion of how an element of predictability will be built into the nature,timing,and extent of audit procedures
E)a discussion of any allegations of fraud that have come to the attention of the auditor
F)both A and B
G)both C and D
H)Both C and E

Question

Quizplus · Accepted Answer

A discussion on fraud in the context of auditing typically includes considerations of circumstances that might indicate the possibility of fraud (C) and discussions on any allegations of fraud that have come to the attention of the auditor (E). Supervising employees (A) is generally the responsibility of management, not auditors. Changes in employee behavior (B) might be noted by management but are not a primary focus for auditors. Building predictability into audit procedures (D) is contrary to audit standards, which suggest varying audit procedures to prevent predictability.

The Fraud Discussion May Include the Following Elements