When assessing the risk of fraud, an auditor can consider:
A) Attitudes and rationalization to justify a fraud.
B) Incentives and pressures to commit fraud.
C) Opportunities to perpetuate a fraud.
D) All of the above.

Question

Quizplus · Accepted Answer

To assess the risk of fraud, auditors should consider all three elements: attitudes and rationalization to justify fraud, incentives and pressures to commit fraud, and opportunities to perpetuate fraud. By evaluating these factors, auditors can identify potential fraud risks and develop appropriate audit procedures to address them. Ignoring any one of these elements could result in overlooking potential fraud risks.

When Assessing the Risk of Fraud, an Auditor Can Consider