1- Auditors are required to actively conduct a financial statement audit with the mindset that fraud may exist. What is the general process that an auditor goes through to assess the risk of fraud and test accordingly?

2- A client seeking to recover damages from an auditor for breach of contract in an action based on negligence must show that the auditor had a duty not to be negligent. Identify at least three defenses an auditor can use against a breach of contract lawsuit.

3- Identify and briefly describe the two principles that should govern the monitoring function.

Answer rating: 100% (QA)

1 Understand the nature of fraud the motivations to commit fraud and the manner in which fraud may be perpetrated Exercise professional skepticism thr... View the full answer