When auditing financial statements and finding indications of a possible misappropriation of assets,independent auditors should
A) Investigate fully to determine the total amount of the misappropriation.
B) Determine which accounts are affected and the amount by which they are overstated or understated.
C) Determine the methods by which the misappropriation was carried out.
D) Identify a person(s) who are likely responsible for the misappropriation and obtain evidence about some other fraud indications in their work.
E) All of the above.

Question

Quizplus · Accepted Answer

When auditors find indications of a possible misappropriation of assets, they should investigate fully to determine the total amount of the misappropriation, determine which accounts are affected and the amount by which they are overstated or understated, determine the methods by which the misappropriation was carried out, and identify a person(s) who are likely responsible for the misappropriation and obtain evidence about some other fraud indications in their work. Therefore, all of the above choices are appropriate for auditors to do in this situation.

When Auditing Financial Statements and Finding Indications of a Possible