The auditor is most likely to presume that a high risk of a fraud exists if:
A)the client is a multinational company that does business in numerous foreign countries.
B)the client does business with several related parties.
C)inadequate segregation of duties places an employee in a position to perpetrate and conceal thefts.
D)inadequate employee training results in lengthy IT exception reports each month.

Question

Quizplus · Accepted Answer

Inadequate segregation of duties places an employee in a position to perpetrate and conceal thefts is a known risk factor for fraud, as it allows an employee to manipulate or misappropriate assets without detection.

The Auditor Is Most Likely to Presume That a High