Why is it important for auditors to consider the possibility of fraud by employees or management on every audit engagement?  Why must they consider the possibility that the client has not complied with laws.

Q: select a corporate scandal of your choice and accordiing to Professional Code of Conduct given by…

A: The answer is stated below:

Q: What is the biggest role or contribution that an accountant/auditor can do in ensuring that ethical…

A: Fraudulent Activities: Deception or other unethical tactics are used to acquire an unlawful benefit,…

Q: If an IT auditor discover irregular & illegal acts during the course of his audit, what should the…

A: Answer: It is the responsibility of the auditor to report independence opinion on any audit…

Q: Jamie is an auditor. While preparing to audit his client, FoodCourt, he finds a weakness in the…

A: Auditing is the process that is followed by a business to check the accuracy of the financial…

Q: Is independence impaired when an auditor is hired, paid, and fired by the same corporate managers…

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

Q: How can external auditors attempt to uncover motivations for committing fraud?

A: Fraud:   It is an intentional misappropriation of the assets or the financial records of an…

Q: In which one of the following circumstances is the improper description of accounting policies and…

A: A error or misstatement in a financial statement is said to be material if it can affect the…

Q: Define and explain the differences among several kinds of employee frauds that might occur at an…

A: Fraud - Fraud is an intentional act done by an employee involving the use of forgery of instrument,…

Q: Can audit managers on the audit engagement team, who are also attorneys admitted to the statebar,…

A: Given: The product liability defects assist the defense of lawsuit against an audit client by the…

Q: The auditor only obtains understanding of internal control related to significant risks identified…

A: Internal control process is related with effective and efficient use of available resources and it…

Q: When it comes to control systems and materiality, why could fraud examiners' views vary from those…

A: Misstatements and judgments are taken into account when determining materiality in the design and…

Q: Which of the following would a fraudster perceive as a pressure?A. lack of management oversightB.…

A: Internal control techniques are those procedures or techniques which will ensure that objectives of…

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: An auditor would issue an adverse opinion if: * The audit was begun by other O independent auditors…

A: An audit opinion refers to the statement given by the auditors on the financial statements of an…

Q: Some criticize the accounting profession for using expressions in the audit report that seem to be…

A:

Q: TYPES OF FRAUD THAT AN AUDITOR TAKES INTO ACCOUNT WHEN DETERMINING THE RISK OF FRAUD?

A: A fraud audit is distinct from a financial statement audit carried out in compliance with GAAS. In…

Q: When it comes to control systems and materiality, why may fraud examiners' perspectives be different…

A: Auditor : He is a firm employee tasked with conducting an audit, verifying all of the company's…

Q: Which of the following statements is incorrect regarding the reliability of audit evidence? a.…

A: The audit is an independent examination of financial information of an entity whether…

Q: Why do you think auditors were not able to detect the fraud in their previous audit

A: Auditing:   Auditing refers to an independent examination of financial information of any…

Q: Which of the following is an example of a self-interest threat to the fundamental principles? The…

A: Self interest threat is the threat of auditor that holds a direct or indirect financial interest in…

Q: Why do fraud examiners handle information in a different manner than auditors? Why is thisimportant?

A: Fraud examiners handle information in a different manner than auditors, in order to minimize the tax…

Q: What are the differences between business failure, auditor failure, and audit risk? Is it fair to…

A: Audit risk is the risk which arises due to the probability or the chance of reporting the financial…

Q: With respect to fraudulent financial reporting, which one of the following statements is not…

A: Auditor can obtain reasonable assurance only, not an absolute assurance.

Q: In Crazy Eddie, the auditors’ work plan and results were viewed by the client, in part because the…

A:

Q: The auditors who find that the client has committed an illegal act would be most likely to withdraw…

A: Auditors are the professionals who are involved in the scrutiny of the financial reports and…

Q: s it necessary for an auditor to understand the client's internal control if the auditor does not…

A: Answer: Concept: Audit is independent check of any entity to derive the conclusion which are true…

Q: Which of the following statements is not a correct statement regarding audit evidence? Select one:…

A: Audit evidence Audit evidence can be defined as the evidence that a company obtains during the…

Q: Why should auditors act as though there is always a potential conflict of interest between the…

A: Holding is a belief that any sort of potential conflict of interest exists between the auditor and…

Q: Which of the following factors most likely would cause a CPA not to accept a new audit engagement?…

A: The audit engagement conducted by the CPA are accepted while considering various norms related…

Q: materiality

A: Ans. Materiality concept states that an accounting standard can be ignored if the net impact of…

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

A:

Q: • Describe some civil and criminal consequences if CPAS/auditors fail to follow professional…

A: Auditor's Liability Risk: Audit risk is the possibility that financial statements are significantly…

Q: It is always a good idea for auditors to begin an audit with the professional skepticism…

A: option (a) is the correct answer.

Q: Which threat may occur when a professional accountant may be deterred from acting objectively by…

A: Intimidation threat may occur when a professional accountant may be deterred from acting objectively…

Q: What are some civil and criminal consequences if CPAs/auditors fail to follow professional…

A: The CPA may be held liable to financial users for any fraud and/or intentional deceit committed. Any…

Q: A CPA should disclose confidential client information without the consent of the client to: Another…

A: Compliance with standards The rule provides that a member cannot disclose any confidential client…

Q: Some auditors claim that increased exposure under creates a litigation environment that is unfairly…

A:

Q: What steps do you believe auditors should take if the client is not pleased with the type of audit…

A: Here discuss about the details of the Steps which are taken by the Auditors whether the Client are…

Q: Why do you think companies were not able to detect the fraud in their previous audit?

A: The responsibility for the prevention and detection of fraud and error rests with the management…

Q: Why might fraud examiners’ attitudes about control systems and materiality differ from that ofother…

A: Materiality is the planning and performing the audit procedures in which certain misstatements,…

Q: Which one of the following is NOT a duty of the auditor? Duty to report on any violation of law Duty…

A: The duties of an Audi have been laid down by the companies Act , 2013, providedd in section 143.

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…

Q: (1) indicate whether you believe the scenario reflects negatively on management integrity, and…

A: Management Integrity is the inbuilt quality of the managers to follow the code of ethics defined for…

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.