The auditor can respond to an increased risk of fraud by doing all of the following except:
A) Evaluating whether the accounting policies selected may be indicative of fraudulent financial reporting through earnings management.
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 would actually decrease the level of assurance provided by the audit, as it means the auditor is willing to accept a higher risk of not detecting material misstatements. Therefore, all other options (A, B, and D) would be appropriate responses to an increased risk of fraud.

The Auditor Can Respond to an Increased Risk of Fraud