Question

Auditors will assess the risk of fraud by considering _______. A fraud risk factors that may...

Auditors will assess the risk of fraud by considering _______.

A fraud risk factors that may be present, such as pressure and opportunities for management to commit fraud

B fraud risk factors that may be present, such as a lack of pressure and opportunities for management to commit fraud

C fraud risk factors that may not be present, such as pressure and opportunities for management to commit fraud

D management's opinion and statements on whether fraud is occurring or not

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Answer #1

Auditors will assess the risk of fraud by considering.......

A. fraud risk factors that may be present, such as pressure and opportunities for management to commit fraud.

Explanation-

Auditors in auditing clients should take care of proper procedure and steps to assess the risk related to fraud by management or their employees. Firstly fraud indications should be asked from management, as there was any fraud oucrred during the year or not. After that Auditor should take steps to assess the risk and check whether there is any indication of fraud or any pressure to meet the targets on management personnel. There can be opportunities of fraud.

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