The audit team is required by auditing standards to make an ordinary presumption of the risk of fraud due to revenue misstatements on every engagement.

Question

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Auditing standards require auditors to presume the risk of fraud on every engagement, including the risk of revenue misstatements. This presumption does not imply that the auditor believes fraud exists, but serves as a reminder that the risk of fraud is always present and must be considered throughout the audit.

The Audit Team Is Required by Auditing Standards to Make