In connection with the examination of financial statements by applying PSA 240 & 300, an independent auditor could be responsible for failure to detect a material fraud if   Select one: a. statistical sampling techniques were not used on the audit engagement. b. accountants performing important parts of the work failed to discover a close relationship between the treasurer and the cashier. c. the auditor planned the work in a hasty and inefficient manner. d. the fraud was perpetrated by one client employee, who circumvented the existing internal controls.

Q: In connection with the audit of financial statements, an independent auditor could be responsible…

A: Option A is the correct answer.

Q: For each of the following situations indicating heightened fraud risk, discuss how a professionally…

A: During the audit, an auditor should analyze the situation and determine every perspective of frauds…

Q: Distinguish between fraudulent financial reporting and misappropriation of assets.

A: As per our guideline we provide solution to the one question but you have asked three different…

Q: Members of the audit engagement team are required to discuss the susceptibility of the entity's…

A: Audit frauds are conducted to hide the actual position of the financial statements of the company to…

Q: b. A reply from a receivable confirmation letter received from the customer through the client is…

A: Confirmation letters are part of audit procedure and are sent to outside parties to confirm certain…

Q: . Inflated sales and bill-and-hold transactions. b.Bill-and-hold transactions and embezzlement of…

A: A Fraud Triangle is a framework that clearly indicates the motivation for an individual to commit…

Q: Which of the following is correct about unmodified audit opinion? O a. Opinion issued once auditors…

A: Auditing: The process of examining the accuracy of the information reported in the books of accounts…

Q: Auditors make materiality judgments during the planning phase of the audit in order to be sure they…

A: 1.

Q: Why must auditors distinguish between fraud committed by employees and management?  Are auditors…

A: It is one of the auditor's responsibility to obtain reasonable assurance that the financial…

Q: financial statement fraud with asset misappropriation

A: Financial statement fraud is a deliberate attempt to conceal actual financial information so as to…

Q: Distinguish between the terms errors and fraud. Distinguish between fraudulent financial reporting…

A: Answer 1) Fraud is an intentiional act Involving the use of deceptiion that results in a materiial…

Q: Mr. Mohammed, the auditor of Sunrise LLC planned the audit properly and performed it in accordance…

A: Audit risk is the risk that  the financial statements may contain misstatements even though auditor…

Q: Auditors must consider the possibility of fraud by employees or management on every audit…

A: Fraud: When someone intentionally uses false or misleading information in an effort to fraudulently…

Q: An auditor has completed the risk assessment process for the firm and is evaluating the results. If…

A:

Q: susceptibility of fraud r

A: Option a is wrong because susceptibility denotes the possibility of fraud, not the occurrence of…

Q: f auditors and investigators modified their typical procedures and regularly used a few unexpected…

A: An Auditor is an individual or a firm named by an organization to execute a review. An individual…

Q: Detection risk is the risk that O a client's system of internal controls will not prevent or detect…

A: Auditing means the independent checking of company operation by outsider. Auditor is  qualified and…

Q: 2. Whom should the auditors contact when they suspect a fraud? A. Either the senior management or…

A: Auditing means the independent checking of company operation by outsider. Auditor is  qualified and…

Q: Rationalization for fraud can fall under two categories: “no harm” and “no responsibility.” Assume…

A: Rationalization: Rationalization emphasizes on the justification provided by an employee and finds…

Q: Which of the following procedures would most likely be performed during planning?a. Surprise…

A: Identifying related parties would most likely be performed during planning.

Q: If an auditor believes that a misstatement might be intentional and the effect on the financial…

A: c) If the auditors prepare the procedure and if check whether the fraud have taken place or going to…

Q: SAS No. 99 (now PCAOB AS 2401) states that the auditor has the responsibility to plan and perform…

A: Professional skepticism is the attitude of critically identifying and assessing the audit evidence

Q: Which of the  factors below does not have to be  considered by the auditor in determining the Key…

A: Key audit matters (KAM) are the significant matter which was found during the audit of the financial…

Q: Describe the elements necessary for a successful fraud examination and explain the differences in…

A:

Q: Accounting Which of the following statements is true regarding the identification and assessment of…

A: While undertaking audit for a client, auditor shall try to identify the potential areas of risk to…

Q: If the auditor believes that a misstatement is or might be intentional and the effect on the…

A: An auditor’s foremost job is to analyze whether the financial statement of the entity has any…

Q: Which of the following statements is FALSE? A. Irregularities are intentional misrepresentations…

A: A. An accounting irregularity is an entry or statement that does not conform to the normal laws,…

Q: Define fraud and explain the two types of misstatements thatare relevant to auditors’ consideration…

A: Solution Introduction This question pertains to standard on auditing which deals with auditors…

Q: In forming the auditor’s opinion, the auditor is required to obtain reasonable assurance about…

A: Reasonable Assurance: When it comes to major misstatements, reasonable assurance is a high degree of…

Q: Upon conclusion of the audit of Marrow Enterprises, the audit firm noted that they have been unable…

A: The auditors audit the financial statement and issue an opinion report that includes the fact that…

Q: If the auditor plans to assess control risk at less than the maximum and rely on controls, and the…

A:

Q: Which of the following is an incorrect statement?       a. The amount of audit work should vary…

A: The person that analyzes the books of the company is known as the auditor. The auditor checks all…

Q: Which of the following best describes the reason why an independent auditorreports on financial…

A: Auditing is a systematic process of analyzing, verifying, and quantifying any given information. It…

Q: Reed, CPA, accepted an engagement to audit the financial statements of Smith Company. Reed’s…

A: It is primarily Reed's obligation to identify Smith's mistakes, fraud, and illegal actions. It is…

Q: Employee Embezzlement via Cash Receipts and Payment of Personal Expenses.Assume you have received a…

A: Since multiple questions are posted only the first three questions will be answered. Kindly resubmit…

Q: Auditing standards do not require auditors of financial statements toa. Understand the nature of…

A:

Q: The following questions concern the auditor’s responses to thepossibility of fraud.a. When fraud…

A: Auditor's responses should focus on how the groups will obtain will acquire proof to lessen the…

Q: An internal auditor plans to use an analytical review to verify the correctness of various operating…

A: When there is fraud in the account, the would not show a correct view.

Q: a. Identify and describe

A: Management can easily override controls and conceal the fraud. It is difficult for employees to…

Q: The following are examples of circumstances that may indicate the possibility that the financial…

A: Audit is the process of checking and verifying financial statements of the business so that it can…

Q: In the course of audit of K Ltd., its auditor Mr. 'N' observed that there was a special audit…

A: Auditor’s Responsibilities Relating to Fraud: As per SA 240 on “The Auditor’s Responsibilities…

Q: Gordon & Moore, CPAs, were the auditors of Fox & Company, a brokerage firm. Gordon & Moore examined…

A: Audit refers to the inspection of the books of accounts that are prepared by the management and…

Q: Which two of the following characterize the work of fraud examiners?a. Analysis of control…

A: Audit: Audit is the process of verification of the compliance of the financial statements. It…

Q: Which of the following statements describes why a properly designed and executedaudit may not detect…

A: Auditing: Auditing is the process by which assertions made by management about financial…

Q: The risk of not detecting a misstatement resulting from fraud is greater than that resulting from…

A: Audit is the process of verifying books of accounts and financial statements of business and it…

Fraud

Fraud in accounting is the planned manipulation of financial documents to make a false appearance of corporate financial health. Moreover, it includes an employee, accountant, or the company itself misleading investors and shareholders.