Which of the following situations is least likely to initiate a forensic accounting engagement?
A) Where management suspects a fraud is occurring within the organization.
B) Where strong internal controls exist.
C) Where an auditor recommends a separate forensic engagement due to hints of fraud uncovered during an audit.
D) Where auditors deem there are situations of heightened fraud risk.

Question

Quizplus · Accepted Answer

Strong internal controls decrease the likelihood that fraud or other financial irregularities will occur in an organization, and therefore decreases the likelihood that a forensic accounting engagement will be initiated. A, C, and D all involve situations where there is suspected fraud or increased fraud risk, which would increase the likelihood of a forensic accounting engagement.

Which of the Following Situations Is Least Likely to Initiate