Factors that may influence the extent of fraud discussion among audit team members include
A)if there is an ongoing fraud investigation,the subject should be avoided
B)any frauds reported by management should be excluded from the discussion
C)the auditor may also consider whether the specialists assigned to the audit team should be included in the discussions
D)if the audit involves the corporate headquarters,corporate counsel should be invited
E)if the audit involves more than one location,there may be multiple fraud discussions
F)both A and B
G)both B and C
H)Both C and E

Question

Quizplus · Accepted Answer

Option A is incorrect as ongoing fraud investigations should not prevent discussion about fraud in general. Option B is incorrect as reporting of fraud by management should not be excluded from discussion. Option C is relevant as consideration of including specialists in discussions is essential to the extent of fraud discussion among audit team members. Option D is incorrect as corporate counsel should not be invited solely because the audit involves corporate headquarters. Option E is also relevant as the extent of fraud discussion may vary depending on the number of locations involved. Option F and G are incorrect as both options are partially correct but do not cover all the factors that may influence the extent of fraud discussion among audit team members. Therefore, the best choice is H, i.e., Both C and E, as these factors are critical in determining the extent of fraud discussion among audit team members.

Factors That May Influence the Extent of Fraud Discussion Among