Auditing standards state that the auditor should focus inquiries regarding fraud with the board of directors and management of their audit clients, and not spend time making inquiries of personnel outside of the normal financial reporting lines of responsibility.

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Auditing standards emphasize that auditors should inquire about fraud not only with management and the board of directors but also with others within the organization, such as employees with different levels of authority. This broader approach helps auditors gain a more comprehensive understanding of the entity's environment and potential fraud risks.

Auditing Standards State That the Auditor Should Focus Inquiries Regarding