What type of direct inquiry does an auditor make of the audit committee regarding the potential for fraud?
A)The auditor inquires about the audit committee's role in preventing and detecting fraud.
B)The auditor inquires about the audit committee's role to communicate with vendors.
C)The auditor inquires about the audit committee's role in the auditor brainstorming session.
D)The auditor inquires about the audit committee's role in determining performance materiality for the audit.

Question

Quizplus · Accepted Answer

The auditor makes direct inquiry of the audit committee regarding their role in preventing and detecting fraud, as part of their responsibilities for oversight of the financial reporting process. This inquiry is necessary to evaluate the potential for fraud in the organization and to ensure that the audit committee is fulfilling their obligations in this area. The other answer choices are not related to the inquiry specifically regarding potential for fraud.

What Type of Direct Inquiry Does an Auditor Make of the Audit