Which of the following statements is accurate about "fraud risk factors" considered when conducting an audit?
A)If the factors are present,it indicates that fraud exists.
B)The factors often have been observed in circumstances where frauds have occurred.
C)The factors will require modification to planned audit procedures.
D)The factors obtained during the audit will lead to required communications with the audit committee.

Question

Quizplus · Accepted Answer

Fraud risk factors are indicators that increase the likelihood of fraud occurring, but the presence of these factors does not necessarily mean fraud exists. They are based on observations from past fraud cases and can help the auditor identify areas of potential risk. These risk factors may require modification to planned audit procedures, and the auditor may need to communicate any identified risks and findings to the audit committee.

Which of the Following Statements Is Accurate About "Fraud Risk