The auditor can respond to an increased risk of fraud by doing all of the following except:
A) increasing professional scepticism.
B) assigning more experienced personnel to the audit.
C) increasing acceptable audit risk.
D) taking steps to obtain more reliable evidence.

Question

Quizplus · Accepted Answer

Increasing acceptable audit risk would actually increase the risk of fraud being missed, so this option would not be an appropriate response to an increased risk of fraud. The other options would all be appropriate responses to an increased risk of fraud. Increasing professional scepticism would involve increasing the level of doubt and questioning during the audit process. Assigning more experienced personnel would provide better judgment and knowledge of potential fraud risk areas. Taking steps to obtain more reliable evidence would involve gathering more and better quality information to reduce the likelihood of missing any fraudulent activity.

The Auditor Can Respond to an Increased Risk of Fraud