In many cases fraud indicators lead to:
A) The need for additional auditors to be present for the audit.
B) Criminal or civil actions against the CEO or CFO of the Corporation.
C) The discovery of errors or unusual events that can reasonably be explained upon further examination.
D) .The discovery of loop holed in the IRS Tax Code that are left up to interpretation.

Question

Quizplus · Accepted Answer

Fraud indicators may suggest that further examination of the financial statements is necessary, but this does not always mean that fraud has occurred. It could simply mean that there are errors or unusual events that require explanation. Therefore, the most likely outcome in many cases is the discovery of events that can be reasonably explained. Option A is incorrect because the need for additional auditors is not always necessary. Option B is incorrect because criminal or civil actions are not always taken as a result of fraud indicators. Option D is incorrect because fraud indicators are not directly related to the IRS Tax Code.

In Many Cases Fraud Indicators Lead To