In those audits where there is a heightened risk of fraud related to debt,which of the following will the auditor not typically perform?
A)Search public records to identify debt.
B)Vouch and trace loan proceeds and debt payments.
C)Send confirmations to lenders and creditors,including confirmation of compliance with any debt covenants.
D)Obtain photocopies of supporting documents.

Question

Quizplus · Accepted Answer

Obtaining photocopies of supporting documents is not a typical procedure in audits with a heightened risk of fraud related to debt. The other options listed are typical procedures, including searching for debt in public records, vouching and tracing loan proceeds and debt payments, and sending confirmations to lenders and creditors.

In Those Audits Where There Is a Heightened Risk of Fraud