According to professional audit standards,how might an understanding of the nature of fraud that may occur in the client organization best be identified by the audit firm?
A)Fraud training courses from actual corporate fraud ex-criminals.
B)Conducting a brainstorming meeting with the members of the audit team.
C)Circulating a survey to the client company employees for completion.
D)Discussions with other CPA firms.

Question

Quizplus · Accepted Answer

Conducting a brainstorming meeting with the members of the audit team is considered the most effective approach in identifying the nature of fraud that may occur in the client organization. This allows the audit team to share their experiences and knowledge of fraud schemes, which can be specific to the industry or client. This approach also ensures that the audit team is aware of the potential fraud risks and can tailor their audit procedures accordingly. Other options may provide some information, but they may not be as effective or relevant in identifying the specific fraud risks in the client organization.

According to Professional Audit Standards,how Might an Understanding of the Nature