A2 - Engagement Acceptance - Fraud Risk Flashcards
1
Q
Why does a properly designed and executed audit not detect material misstatements due to fraud?
A
Audit procedures that are effective for detecting an unintentional misstatement may be ineffective for an intentional misstatement that is concealed through collusion.
2
Q
What is the primary objective of the fraud brainstorming session?
A
Assess the potential for material misstatement due to fraud.
