According to professional audit standards,how might auditors gain an understanding of the nature of fraud that may occur in the client organization?
A)Fraud training courses from actual corporate fraud ex-criminals.
B)Conducting a brainstorming session with the members of the audit team.
C)Circulating a survey to the client company employees for completion.
D)Discussions with other audit firms.

Question

Quizplus · Accepted Answer

Conducting a brainstorming session with the members of the audit team is the best choice because it allows for open discussion and sharing of experiences and knowledge among the team members, as well as identification of specific areas or processes that may be susceptible to fraud. Fraud training courses from actual corporate fraud ex-criminals may provide some insight, but may not be practical or feasible for all auditors. Circulating a survey to the client company employees may not yield reliable information, as employees may not be willing to disclose information about fraud, and discussions with other audit firms may not be feasible or practical due to confidentiality and independence issues.

According to Professional Audit Standards,how Might Auditors Gain an Understanding