What is the general character of the work conducted in performing a forensic audit?
A)Detecting or deterring fraudulent activity.
B)Determining whether internal control is operating efficiently and effectively
C)Identifying the causes of an entity's financial difficulties.
D)Offering an opinion on the reliability of the specific assertions made by management.

Question

Quizplus · Accepted Answer

The general character of the work conducted in performing a forensic audit is detecting or deterring fraudulent activity. A forensic audit is conducted to investigate financial fraud, embezzlement, or misconduct. The primary focus is to identify any fraudulent activities and gather evidence for legal action against the individuals involved.

Option B is incorrect because a forensic audit is not performed to determine whether internal control is operating efficiently and effectively. This is the scope of an operational audit.

Option C is also incorrect because a forensic audit goes beyond identifying the causes of an entity's financial difficulties.

Option D is incorrect because a forensic audit is not performed to offer an opinion on the reliability of the specific assertions made by management. This is the scope of a financial statement audit.

What Is the General Character of the Work Conducted in Performing