The auditor can respond to an increased risk of fraud by doing all of the following except:
A) Heavily emphasizing the importance of professional skepticism.
B) Assigning more experienced personnel to the audit.
C) Increasing detection risk.
D) Taking steps to obtain more reliable evidence.

Question

Quizplus · Accepted Answer

Increasing detection risk actually increases the risk that the auditor will not detect a material misstatement, which is the opposite of what the auditor should do in response to an increased risk of fraud. Therefore, all other options (emphasizing professional skepticism, assigning more experienced personnel, and obtaining more reliable evidence) would be appropriate responses to an increased risk of fraud.

The Auditor Can Respond to an Increased Risk of Fraud