Required information Chapter 04 Problem 4-31 LO 4-6, 4-9 [The following information applies to the questions displayed below.] Management fraud (e.g., fraudulent financial reporting) is a relatively rare event. However, when it does occur, the frauds (e.g., Enron and World Com) can have a significant effect on shareholders, employees, and other parties. The PCAOB's AS 2401, Consideration of Fraud in a Financial Statement Audit, provides the relevant guidance for auditors. Chapter 04 Problem 4-31 Part b LO 4-6, 4-9 b. Select the three conditions that are generally present when fraud occurs: Note: You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Management or other employees have an incentive or are under pressure that provides a reason to commit fraud. Circumstances exist that provide an opportunity for a fraud to be carried out. Those involved are able to rationalize committing a fraudulent act. Some individuals possess an attitude, character, or set of ethical values that allow them to knowingly and intentionally commit a dishonest act. Those involved have less than a high-school education. Those involved have no religious affiliations. Those involved are in their first year at the company.
Required information Chapter 04 Problem 4-31 LO 4-6, 4-9 [The following information applies to the questions displayed below.] Management fraud (e.g., fraudulent financial reporting) is a relatively rare event. However, when it does occur, the frauds (e.g., Enron and World Com) can have a significant effect on shareholders, employees, and other parties. The PCAOB's AS 2401, Consideration of Fraud in a Financial Statement Audit, provides the relevant guidance for auditors. Chapter 04 Problem 4-31 Part b LO 4-6, 4-9 b. Select the three conditions that are generally present when fraud occurs: Note: You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Management or other employees have an incentive or are under pressure that provides a reason to commit fraud. Circumstances exist that provide an opportunity for a fraud to be carried out. Those involved are able to rationalize committing a fraudulent act. Some individuals possess an attitude, character, or set of ethical values that allow them to knowingly and intentionally commit a dishonest act. Those involved have less than a high-school education. Those involved have no religious affiliations. Those involved are in their first year at the company.
Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter11: Auditing Inventory, Goods And Services, And Accounts Payable: The Acquisition And Payment Cycle
Section: Chapter Questions
Problem 25RQSC
Related questions
Question
![Required information
Chapter 04 Problem 4-31 LO 4-6, 4-9
[The following information applies to the questions displayed below.]
Management fraud (e.g., fraudulent financial reporting) is a relatively rare event. However, when it does occur, the frauds
(e.g., Enron and World Com) can have a significant effect on shareholders, employees, and other parties. The PCAOB's AS
2401, Consideration of Fraud in a Financial Statement Audit, provides the relevant guidance for auditors.
Chapter 04 Problem 4-31 Part b LO 4-6, 4-9
b. Select the three conditions that are generally present when fraud occurs:
Note: You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct
answer and double click the box with the question mark to empty the box for a wrong answer.
Management or other employees have an incentive or are under pressure that provides a reason to commit fraud.
Circumstances exist that provide an opportunity for a fraud to be carried out.
Those involved are able to rationalize committing a fraudulent act. Some individuals possess an attitude, character, or set of ethical values
that allow them to knowingly and intentionally commit a dishonest act.
Those involved have less than a high-school education.
Those involved have no religious affiliations.
Those involved are in their first year at the company.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd8b2a8a8-df60-4d22-aaff-7005deaec9c2%2F140ed9e6-0699-4922-8c74-8bf2367cea5f%2F74wtsat_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
Chapter 04 Problem 4-31 LO 4-6, 4-9
[The following information applies to the questions displayed below.]
Management fraud (e.g., fraudulent financial reporting) is a relatively rare event. However, when it does occur, the frauds
(e.g., Enron and World Com) can have a significant effect on shareholders, employees, and other parties. The PCAOB's AS
2401, Consideration of Fraud in a Financial Statement Audit, provides the relevant guidance for auditors.
Chapter 04 Problem 4-31 Part b LO 4-6, 4-9
b. Select the three conditions that are generally present when fraud occurs:
Note: You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct
answer and double click the box with the question mark to empty the box for a wrong answer.
Management or other employees have an incentive or are under pressure that provides a reason to commit fraud.
Circumstances exist that provide an opportunity for a fraud to be carried out.
Those involved are able to rationalize committing a fraudulent act. Some individuals possess an attitude, character, or set of ethical values
that allow them to knowingly and intentionally commit a dishonest act.
Those involved have less than a high-school education.
Those involved have no religious affiliations.
Those involved are in their first year at the company.
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