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
2
Q
an auditor must document why they did not identify _________ as a fraud risk
A
improper revenue recognition
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
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
