Which of the following actions should the auditor take to assess fraud risk? a. Being aware of

Question:

Which of the following actions should the auditor take to assess fraud risk?

a. Being aware of representations made by management to analysts and the potential effect of those expectations on stock prices.

b. Determining whether the company’s accounting is being investigated by organizations such as the SEC. 

c. Considering management compensation schemes, especially those that rely on stock options and therefore current stock prices. 

d. All of the above.  

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Auditing A Risk Based Approach

ISBN: 9780357721872

12th Edition

Authors: Karla M Johnstone-Zehms, Audrey A. Gramling, Larry E. Rittenberg

Question Posted: