Question: If the auditor believes that a misstatement is or might be intentional and the effect on the financial statements could be material or cannot be

If the auditor believes that a misstatement is or might be intentional and the effect on the financial statements could be material or cannot be readily determined, the auditor should do which of the following?
a. Inquire of management as to the possibility of fraud.
b. Discuss with the audit committee what should be done to prevent possible future misstatements.
c. Perform procedures to obtain additional audit evidence to determine whether fraud has occurred or is likely to have occurred.
d. Both a and b are correct.
e. None of these is correct.

Step by Step Solution

3.48 Rating (174 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

a Incorrect This is a step that the auditor would likely complete during the planning stages of ... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

332-B-A-A-A-N (1871).docx

120 KBs Word File

Students Have Also Explored These Related Auditing Questions!