Which of the following might be considered a "red flag" indicating possible fraud in a large manufacturing company with several subsidiaries? a. A consistent record of above average return on investment for all subsidiaries b. The existence of a financial subsidiary c. Use of separate bank accounts for payrolls by each subsidiary d. Complex sales-transactions and transfers of funds between affiliated companies

Which of the following might be considered a
"red flag" indicating possible fraud in a large
manufacturing company with several
subsidiaries?
a. A consistent record of above average
return on investment for all subsidiaries
b. The existence of a financial subsidiary
c. Use of separate bank accounts for
payrolls by each subsidiary
d. Complex sales-transactions and
transfers of funds between affiliated
companies
by

1 Answer

Answer :

Complex sales-transactions and
transfers of funds between affiliated
companies
by

Related questions

The essence of the attest function is to a. Detect fraud. b. Examine individual transactions so that the auditor can certify as to their validity. c. Determine whether the client's financial statements are fairly stated. d. Ensure the consistent application of correct accounting procedures.

Description : The essence of the attest function is to a. Detect fraud. b. Examine individual transactions so that the auditor can certify as to their validity. c. Determine whether the client's financial statements are fairly stated. d. Ensure the consistent application of correct accounting procedures.

Last Answer : Determine whether the client's financial statements are fairly stated.

The ordinary examination of financial statements is not primarily designed to disclose defalcations and other irregularities although their discovery may result. Normal audit procedures are more likely to detect a fraud arising from a. Theft of inventories. b. Collusion on the part of several employees. c. Failure to record cash receipts for services rendered. d. Forgeries on company checks

Description : The ordinary examination of financial statements is not primarily designed to disclose defalcations and other irregularities although their discovery may result. Normal audit procedures are more likely to ... . Failure to record cash receipts for services rendered. d. Forgeries on company checks

Last Answer : Theft of inventories

The ordinary examination of financial statements is not primarily designed to disclose defalcations and other irregularities although their discovery may result. Normal audit procedures are more likely to detect a fraud arising from a. Collusion on the part of several employees. b. Failure to record cash receipts for services rendered. c. Forgeries on company checks. d. Theft of inventories

Description : The ordinary examination of financial statements is not primarily designed to disclose defalcations and other irregularities although their discovery may result. Normal audit procedures are more likely to ... receipts for services rendered. c. Forgeries on company checks. d. Theft of inventories

Last Answer : Theft of inventories

Which of the following is most likely to be considered a risk factor relating to fraudulent financial reporting? a. Low turnover of senior management. b. Extreme degree of competition within the industry. c. Capital structure including various operating subsidiaries. d. Sales goals in excess of any of the preceding three years

Description : Which of the following is most likely to be considered a risk factor relating to fraudulent financial reporting? a. Low turnover of senior management. b. Extreme degree of competition within the ... various operating subsidiaries. d. Sales goals in excess of any of the preceding three years

Last Answer : Extreme degree of competition within the industry.

Which of the following would not fit the description of a related-party transaction? a. An unusually large sale of merchandise to the company's best and largest customer. b. Sales of merchandise between a parent company and its subsidiary. c. Exchanges of equipment between two companies owned by the same person. d. Loans to corporate officers at market rates of interest with a regular repayment schedule.

Description : Which of the following would not fit the description of a related-party transaction? a. An unusually large sale of merchandise to the company's best and largest customer. b. Sales of merchandise ... person. d. Loans to corporate officers at market rates of interest with a regular repayment schedule.

Last Answer : An unusually large sale of merchandise to the company's best and largest customer.

Which of the following would not be classified as a related-party transaction? a. Sales of merchandise between affiliated companies. b. An advance of one week's salary to an employeec. Loans or credit sales to the principal owner or client. d. Exchanges of equipment between two companies owned by the same person.

Description : Which of the following would not be classified as a related-party transaction? a. Sales of merchandise between affiliated companies. b. An advance of one week's salary to an employee. c. Loans ... the principal owner or client. d. Exchanges of equipment between two companies owned by the same person

Last Answer : An advance of one week's salary to an employee

Which of the following actions would be an appropriate response by companies to improve the public's perception of their financial reporting? a. Requiring internal auditors to report all significant findings of fraud and illegal activity to the company president. b. Increased adoption of audit committees. c. Keeping external and internal auditing work separated to maintain independence. d. None of the above.

Description : Which of the following actions would be an appropriate response by companies to improve the public's perception of their financial reporting? a. Requiring internal auditors to report all significant ... external and internal auditing work separated to maintain independence. d. None of the above.

Last Answer : Increased adoption of audit committees.

Which of the following factors most likely would influence an auditor’s determination of the auditability of an entity’s financial statements? a. The complexity of the accounting system. b. The existence of related-party transactions. c. The adequacy of the accounting records. d. The operating effectiveness of control procedures.

Description : Which of the following factors most likely would influence an auditor's determination of the auditability of an entity's financial statements? a. The complexity of the accounting system. b. The ... c. The adequacy of the accounting records. d. The operating effectiveness of control procedures.

Last Answer : The adequacy of the accounting records.

Which of the following procedures would an auditor be most likely to perform in planning a financial statement audit? a. Reviewing investment transactions of the audit period to determine whether related parties were created. b. Performing analytical procedures to identify areas that may represent specific risks. c. Obtaining a written representation letter from the client to emphasize management's responsibilities. d. Reading the minutes of stockholder and director meetings to discover whether any unusual transactions have occurred.

Description : Which of the following procedures would an auditor be most likely to perform in planning a financial statement audit? a. Reviewing investment transactions of the audit period to determine ... the minutes of stockholder and director meetings to discover whether any unusual transactions have occurred.

Last Answer : Performing analytical procedures to identify areas that may represent specific risks.

The need for assurance services arises because: a. There is a potential bias in providing information. b. Economic transactions are less complex than they were a decade ago. c. There is a consonance of interests of the preparer and the user of the financial statements. d. Most users today have access to the system that generates the financial statements they use

Description : The need for assurance services arises because: a. There is a potential bias in providing information. b. Economic transactions are less complex than they were a decade ago. c. There is a consonance ... . d. Most users today have access to the system that generates the financial statements they use

Last Answer : There is a potential bias in providing information

The underlying conditions that create demand by users for reliable information include the following except: a. Decisions are not time-sensitive. b. Transactions that are numerous and complex. c. Users separated from accounting records by distance and time. d. Financial decisions that are important to investors and users

Description : The underlying conditions that create demand by users for reliable information include the following except: a. Decisions are not time-sensitive. b. Transactions that are numerous and complex. c. ... records by distance and time. d. Financial decisions that are important to investors and users

Last Answer : Decisions are not time-sensitive

An auditor is required to obtain a basic understanding of the client's internal control to plan the audit. The auditor may then decide to perform tests of controls on alinternal control procedures a. That would aid in preventing fraud. b. Documented in the flowchart. c. Considered to be weaknesses that might allow errors to enter the accounting system. d. Considered to be strengths for which the auditor desires further reduction in the assessed level of control risk.l

Description : An auditor is required to obtain a basic understanding of the client's internal control to plan the audit. The auditor may then decide to perform tests of controls on all internal control ... to be strengths for which the auditor desires further reduction in the assessed level of control risk.

Last Answer : Considered to be strengths for which the auditor desires further reduction in the assessed level of control risk.

Which of the following is best considered a fraud? a. Inability to provide due diligence. b. Intentional misrepresentation of financial information. c. Declining to finish work on client in light of a valid contract. d. Not acting professionally while performing services

Description : Which of the following is best considered a fraud? a. Inability to provide due diligence. b. Intentional misrepresentation of financial information. c. Declining to finish work on client in light of a valid contract. d. Not acting professionally while performing services

Last Answer : Intentional misrepresentation of financial information

Which of the following is most likely to be an overall response to fraud risks identified in an audit? a. Only use certified public accountants on the engagemenb. Place increased emphasis on the audit of objective transactions rather than subjective transactions. c. Supervise members of the audit team less closely and rely more upon judgment. d. Use less predictable audit procedures.t

Description : Which of the following is most likely to be an overall response to fraud risks identified in an audit? a. Only use certified public accountants on the engagement b. Place increased emphasis on the ... the audit team less closely and rely more upon judgment. d. Use less predictable audit procedures.

Last Answer : Use less predictable audit procedures.

Which of the following is most likely to be an overall response to fraud risks identified in an audit? a. Supervise members of the audit team less closely and rely more upon judgment. b. Use less predictable audit procedures. c. Use only certified public accountants on the engagement. d. Place increased emphasis on the audit of objective transactions rather than subjective transactions.

Description : Which of the following is most likely to be an overall response to fraud risks identified in an audit? a. Supervise members of the audit team less closely and rely more upon ... engagement. d. Place increased emphasis on the audit of objective transactions rather than subjective transactions.

Last Answer : Use less predictable audit procedures.

Which of the following is most likely to be an overall response to fraud risks identified in an audit? a. Supervise members of the audit team less closely and rely more uponjudgment.b. Use less predictable auditprocedures.c. Use only certified public accountants onthe engagement.d. Place increased emphasis on the audit ofobjective transactions rather thansubjective transactions

Description : Which of the following is most likely to be an overall response to fraud risks identified in an audit? a. Supervise members of the audit team less closely and rely more upon ... the engagement. d. Place increased emphasis on the audit of objective transactions rather than subjective transactions

Last Answer : Use less predictable audit procedures.

Which of the following is most likely to be an overall response to fraud risks identified in an audit? a. Supervise members of the audit team less closely and rely more upon judgment. b. Only use certified public accountants on the engagement. c. Place increased emphasis on the audit of objective transactions rather than subjective transactions. d. Use less predictable audit procedures.

Description : Which of the following is most likely to be an overall response to fraud risks identified in an audit? a. Supervise members of the audit team less closely and rely more upon ... the audit of objective transactions rather than subjective transactions. d. Use less predictable audit procedures.

Last Answer : Use less predictable audit procedures.

The auditor's evaluation of the likelihood of material employee fraud is normally done initially as a part of a. The assessment of whether to accept the audit engagement. b. Understanding the entity's internal control structure. c. The Tests of Controls. d. The Tests of Transactions

Description : The auditor's evaluation of the likelihood of material employee fraud is normally done initially as a part of a. The assessment of whether to accept the audit engagement. b. Understanding the entity's internal control structure. c. The Tests of Controls. d. The Tests of Transactions

Last Answer : Understanding the entity's internal control structure.

The auditor's evaluation of the likelihood of material employee fraud is normally done initially as a part of a. The assessment of whether to accept the audit engagement. b. Understanding the entity's internal control structure. c. The Tests of Controls. d. The Tests of Transactions

Description : The auditor's evaluation of the likelihood of material employee fraud is normally done initially as a part of a. The assessment of whether to accept the audit engagement. b. Understanding the entity's internal control structure. c. The Tests of Controls. d. The Tests of Transactions

Last Answer : Understanding the entity's internal control structure

Which of the following is least likely to be required on an audit? a. Review accounting estimates for biases. b. Test appropriateness of journal entries and adjustment. c. Make a legal determination of whether fraud has occurred. d. Evaluate the business rationale for significant unusual transactions

Description : Which of the following is least likely to be required on an audit? a. Review accounting estimates for biases. b. Test appropriateness of journal entries and adjustment. c. ... determination of whether fraud has occurred. d. Evaluate the business rationale for significant unusual transactions

Last Answer : Make a legal determination of whether fraud has occurred.

Which of the following is an "error" as distinguished from "fraud"? a. Lapping b. Embezzlement of company's fund c. Clerical mistakes in the processing of transactions d. Window dressing

Description : Which of the following is an "error" as distinguished from "fraud"? a. Lapping b. Embezzlement of company's fund c. Clerical mistakes in the processing of transactions d. Window dressing

Last Answer : Clerical mistakes in the processing of transactions

Which of the following is least likely to be required on an audit? a. Review accounting estimates for biases b. Test appropriateness of journal entries and adjustment c. Make a legal determination of whether fraud has occurred d. Evaluate the business rationale for significant, unusual transactions

Description : Which of the following is least likely to be required on an audit? a. Review accounting estimates for biases b. Test appropriateness of journal entries and adjustment c. Make a legal determination of whether fraud has occurred d. Evaluate the business rationale for significant, unusual transactions

Last Answer : Make a legal determination of whether fraud has occurred

The auditor's defense of contributory negligence is most likely to prevail when a. Third party injury has been minimal. b. The client is privately held as contrasted with a public company. c. Undetected errors have resulted in materially misleading financial statements. d. The auditor fails to detect fraud resulting from management override of the control structure

Description : The auditor's defense of contributory negligence is most likely to prevail when a. Third party injury has been minimal. b. The client is privately held as contrasted with a public company ... statements. d. The auditor fails to detect fraud resulting from management override of the control structure

Last Answer : The auditor fails to detect fraud resulting from management override of the control structure

Why does a company choose to have an independent auditor report on its financial statements? a. Independent auditors will always detect management fraud. b. Independent auditors guarantee the accuracy of the financial statements. c. The company preparing the statements may have a vested interest in reporting certain results. d. An independent audit is designed to search for deficiencies in the company's internal control

Description : Why does a company choose to have an independent auditor report on its financial statements? a. Independent auditors will always detect management fraud. b. Independent auditors guarantee the accuracy ... . An independent audit is designed to search for deficiencies in the company's internal control

Last Answer : The company preparing the statements may have a vested interest in reporting certain results.

The auditor's defense of contributory negligence is most likely to prevail when a. Third party injury has been minimal. b. The client is privately held as contrasted with a public company. c. Undetected errors have resulted in materially misleading financial statements. d. The auditor fails to detect fraud resulting from management override of the control structure.

Description : The auditor's defense of contributory negligence is most likely to prevail when a. Third party injury has been minimal. b. The client is privately held as contrasted with a public company. ... . d. The auditor fails to detect fraud resulting from management override of the control structure.

Last Answer : The auditor fails to detect fraud resulting from management override of the control structure.

Which of the following is most likely to be a response to the auditor's assessment that the risk of material misstatement due to fraud for the existence of inventory is high? a. Observe test counts of inventory at certain locations on an unannounced basis. b. Perform analytical procedures rather than taking test counts. c. Request that inventories be counted prior to year end. d. Request that inventory counts at the various locations be counted on different dates so as to allow the same auditor to be present at every count

Description : Which of the following is most likely to be a response to the auditor's assessment that the risk of material misstatement due to fraud for the existence of inventory is high? a. Observe test counts ... be counted on different dates so as to allow the same auditor to be present at every count

Last Answer : Observe test counts of inventory at certain locations on an unannounced basis.

Which of the following is/are non-banking subsidiary of the State Bank of India? A. SBI Capital Markets Ltd. B. SBI General Insurance Company Limited. C. SBI Funds Management Pvt Ltd. D. All of the Above E. None of the Above

Description : Which of the following is/are non-banking subsidiary of the State Bank of India? A. SBI Capital Markets Ltd. B. SBI General Insurance Company Limited. C. SBI Funds Management Pvt Ltd. D. All of the Above E. None of the Above

Last Answer : D. All of the Above Explanation: SBI has the following Non-Banking Subsidiaries in India: SBI Capital Markets Ltd. SBI Funds Management Pvt Ltd. SBI Global Factors Ltd. SBI Cards & Payments ... (SBICPSL) SBI DFHI Ltd. SBI General Insurance Company Limited. SBI Pension Funds Pvt Ltd (SBIPFPL)

Which of the following companies has set up two wholly owned subsidiaries in July 2016, one for its broker business and another for insurance business? A) EXIM Bank B) Religare Enterprises C) Muthoot Finance D) Sahara Asset Management Company E) None of these

Description : Which of the following companies has set up two wholly owned subsidiaries in July 2016, one for its broker business and another for insurance business? A) EXIM Bank B) Religare Enterprises C) Muthoot Finance D) Sahara Asset Management Company E) None of these

Last Answer : B) Religare Enterprises Explanation: Religare Enterprises has set up two wholly owned subsidiaries – Religare Broking Limited and Religare Insurance Ltd – as part of its restructuring plan.

Experience has shown that certain conditions in an organization are symptoms of possible management fraud. Which of the following conditions would not be considered an indicator of possible fraud? a. Managers are regularly assuming subordinates' duties b. Managers are subject to formal performance reviews on a regular basis. c. Managers are dealing in matters outside their profit center's scope d. Managers are not complying with corporate directives and procedures

Description : Experience has shown that certain conditions in an organization are symptoms of possible management fraud. Which of the following conditions would not be considered an indicator of possible fraud? ... their profit center's scope d. Managers are not complying with corporate directives and procedures

Last Answer : Managers are subject to formal performance reviews on a regular basis.

Which of the following concepts is most useful in assessing the scope of an auditor's program relating to various accounts? a. Attribute sampling b. Management fraud c. Materiality d. The reliability of information

Description : Which of the following concepts is most useful in assessing the scope of an auditor's program relating to various accounts? a. Attribute sampling b. Management fraud c. Materiality d. The reliability of information

Last Answer : Materiality

Which of the following is not one of the primary concerns in the Finance Department? a. Acquiring the capital needed for company activities. b. Establishing a dividend policy that maximizes the return to shareholders. c. Setting accounts payable and accounts receivable policies. d. Driving the financial structure of the firm, its relationship between debt and equity. e. Deciding promo and sales budget

Description : Which of the following is not one of the primary concerns in the Finance Department? a. Acquiring the capital needed for company activities. b. Establishing a dividend policy that maximizes the ... structure of the firm, its relationship between debt and equity. e. Deciding promo and sales budget

Last Answer : e. Deciding promo and sales budget

The principle of professional behavior requires a CPA to a. Be straightforward and honest in performing professional services. b. Perform professional services with due care, competence and diligence.c. Be fair and should not allow prejudice or bias, conflict of interest or influence of others to override objectivity. d. Act in a manner consistent with the good reputation of the profession and refrain from any conduct which might bring discredit to the profession

Description : The principle of professional behavior requires a CPA to a. Be straightforward and honest in performing professional services. b. Perform professional services with due care, competence and diligence. ... of the profession and refrain from any conduct which might bring discredit to the profession

Last Answer : Act in a manner consistent with the good reputation of the profession and refrain from any conduct which might bring discredit to the profession

A global - as opposed to international - strategy involves: a) a wide variety of business strategies across countries. b) a single strategy for a subsidiary of a multinational firm. c) a single strategy for the entire global network of subsidiaries and partners. d) a wide variety of subsidiary strategies within the global network of subsidiaries

Description : A global - as opposed to international - strategy involves: a) a wide variety of business strategies across countries. b) a single strategy for a subsidiary of a multinational firm. c) ... and partners. d) a wide variety of subsidiary strategies within the global network of subsidiaries

Last Answer : a single strategy for the entire global network of subsidiaries and partners.

Which of the following factors most likely would heighten an auditor's concern about the risk of fraudulent financial reporting? a. Large amounts of liquid assets that are easily convertible into cash. b. Low growth and profitability as compared to other entity's in the same industry. c. Financial management's participation in the initial selection of accounting principles. d. An overly complex organizational structure involving unusual lines of authority.

Description : Which of the following factors most likely would heighten an auditor's concern about the risk of fraudulent financial reporting? a. Large amounts of liquid assets that are easily ... of accounting principles. d. An overly complex organizational structure involving unusual lines of authority.

Last Answer : An overly complex organizational structure involving unusual lines of authority.

Which of the following is an example of fraudulent financial reporting? a. The treasurer diverts customer payments to his personal due, concealing hisactions by debiting an expense account,thus overstating expenses. b. Company management changesinventory count tags and overstatesending inventory, while understatingcost of goods sold. c. An employee steals inventory and the“shrinkage” is recorded in cost of goodssold. d. An employee steals small tools from thecompany and neglects to return them;the cost is reported as a miscellaneousoperating expense

Description : Which of the following is an example of fraudulent financial reporting? a. The treasurer diverts customer payments to his personal due, concealing hisactions by debiting an expense account, thus ... the company and neglects to return them; the cost is reported as a miscellaneous operating expense

Last Answer : Company management changes inventory count tags and overstates ending inventory, while understating cost of goods sold

Which of the following is correct concerning requirements about auditor's communications about fraud? a. Fraud that involves senior management should be reported directly to the audit committee regardless of the amounts involved. b. All fraud with a material effect on the financial statements should be reported directly by the auditor to the SEC c. Fraud with a material effect on the financial statements should ordinarily be disclosed by the auditor through the use of an emphasis of a matter paragraph added to the audit report. d. The auditor has no responsibility to disclose fraud outside the entity under any circumstances

Description : Which of the following is correct concerning requirements about auditor's communications about fraud? a. Fraud that involves senior management should be reported directly to the audit committee ... . The auditor has no responsibility to disclose fraud outside the entity under any circumstances

Last Answer : Fraud that involves senior management should be reported directly to the audit committee regardless of the amounts involved

The principal issue to be resolved in cases involving alleged negligence is usually a. The amount of the damages suffered by the users of the financial statements. b. Whether to impose punitive damages on defendant. c. The level of care required to be exercised. d. Whether defendant was involved in fraud.

Description : The principal issue to be resolved in cases involving alleged negligence is usually a. The amount of the damages suffered by the users of the financial statements. b. Whether to impose punitive damages on ... c. The level of care required to be exercised. d. Whether defendant was involved in fraud.

Last Answer : The level of care required to be exercised

The principal issue to be resolved in cases involving alleged negligence is usually a. The amount of the damages suffered by the users of the financial statements. b. Whether to impose punitive damages on defendant. c. The level of care required to be exercised. d. Whether defendant was involved in fraud.

Description : The principal issue to be resolved in cases involving alleged negligence is usually a. The amount of the damages suffered by the users of the financial statements. b. Whether to impose punitive damages on ... c. The level of care required to be exercised. d. Whether defendant was involved in fraud.

Last Answer : The level of care required to be exercised.

Fraudulent financial reporting is often called: a. Theft of assets b. Employee fraud c. Management fraud d. Defalcation

Description : Fraudulent financial reporting is often called: a. Theft of assets b. Employee fraud c. Management fraud d. Defalcation

Last Answer : Management fraud

Which of the following should the auditors normally interview as part of their assessment of fraud risk? a. Senior management b. Audit committee c. Various employees whose duties financial reporting responsibilities d. All of the given choices

Description : Which of the following should the auditors normally interview as part of their assessment of fraud risk? a. Senior management b. Audit committee c. Various employees whose duties financial reporting responsibilities d. All of the given choices

Last Answer : All of the given choices

Which of the following is least likely included in an auditor’s inquiry of management while obtaining information to identify the risks of material misstatement due to fraud? a. Are financial reporting operations controlled by and limited to one location? b. Does it have knowledge of fraud or suspect fraud? c. Does it have programs to mitigate fraud risks? d. Has it reported to the audit committee the nature of the company's internal control?

Description : Which of the following is least likely included in an auditor's inquiry of management while obtaining information to identify the risks of material misstatement due to fraud? a. Are financial reporting ... d. Has it reported to the audit committee the nature of the company's internal control?

Last Answer : Are financial reporting operations controlled by and limited to one location?

In connection with the examination of financial statements, an independent auditor could be responsible for failure to detect a material fraud if a. Accountants performing important parts of the work failed to discover a close relationship between the treasurer and the cashier. b. The auditor planned the work in a hasty and inefficient manner. c. Statistical sampling techniques were not used on the audit engagement. d. The fraud was perpetrated by one client employee, who circumvented the existing internal control

Description : In connection with the examination of financial statements, an independent auditor could be responsible for failure to detect a material fraud if a. Accountants performing important parts of the ... . The fraud was perpetrated by one client employee, who circumvented the existing internal control

Last Answer : The auditor planned the work in a hasty and inefficient manner.

In connection with the examination of financial statements, an independent auditor could be responsible for failure to detect a material fraud if a. Statistical sampling techniques were not used on the audit engagement. b. The fraud was perpetrated by one client employee, who circumvented the existing internal control. c. The auditor planned the work in a hasty and inefficient manner. d. Accountants performing important partsof the work failed to discover a closerelationship between the treasurer andthe cashie

Description : In connection with the examination of financial statements, an independent auditor could be responsible for failure to detect a material fraud if a. Statistical sampling techniques were not used on ... partsof the work failed to discover a close relationship between the treasurer and the cashie

Last Answer : The auditor planned the work in a hasty and inefficient manner.

Auditors would normally interview all but which of the following individuals as part of their assessment of fraud risk? a. Senior management b. Audit committee c. Various employees whose duties do not include normal financial reporting responsibilities d. All of the above

Description : Auditors would normally interview all but which of the following individuals as part of their assessment of fraud risk? a. Senior management b. Audit committee c. Various employees whose duties do not include normal financial reporting responsibilities d. All of the above

Last Answer : All of the above

With respect to errors and fraud, the auditor should plan to a. Search for errors or fraud that would have a material effect on the financial statements. b. Discover errors or fraud that would have a material effect on the financial statements. c. Search for errors that would have a material effect and for fraud that would have either material or immaterial effects on the financial statements. d. Search for fraud that would have a material effect and for errors that would have either material or immaterial effects on the financial statements.

Description : With respect to errors and fraud, the auditor should plan to a. Search for errors or fraud that would have a material effect on the financial statements. b. Discover errors or fraud ... material effect and for errors that would have either material or immaterial effects on the financial statements.

Last Answer : Discover errors or fraud that would have a material effect on the financial statements

Which of the following is true? a. Auditors are responsible for detecting all fraudulent financial reporting. b. Auditors must specifically consider fraud risk from overstating liabilities. c. Auditors must specifically consider fraud risk from management override of controls. d. All of the above are true

Description : Which of the following is true? a. Auditors are responsible for detecting all fraudulent financial reporting. b. Auditors must specifically consider fraud risk from overstating liabilities. c. Auditors must ... consider fraud risk from management override of controls. d. All of the above are true

Last Answer : Auditors must specifically consider fraud risk from management override of controls.