Ch 4 Gleim Flashcards

1
Q

What statement reflects an auditor’s responsibility for detecting fraud and errors?

A

an auditor should design the audit to provide reasonable assurance of detecting fraud and errors that are material to the financial statements

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2
Q

an auditor must document why they did not identify _________ as a fraud risk

A

improper revenue recognition

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3
Q

a fraud response with an overall effect on the conduct of an audit is:

A

consider whether management’s applications of accounting principles indicates a bias

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4
Q

who should the auditors notify first when discovering an immaterial fraud made by a low level employee?

A

the appropriate level of management

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