Question 2 (10 marks) Listed below under "A", are the first parts of ten sentences. Listed under "B" are the second parts of each sentence. When the parts (A and B) are combined, a complete and correct sentence is made. List A A1 Events or conditions that indicate an incentive or pressure to commit fraud are referred to as........... A2 The element or characteristic which distinguishes fraud from error, is........... A3 Intentionally using an inappropriate policy for revenue recognition to inflate profits is an example of........... A4 The auditor does not simply accept everything he is told by the client; this attitude is referred to as............ A5 The auditor should consider the ask of fraudulent financial reporting in terms of management's attitude, opportunity and.......... A6 Embezzlement of cash sales by a cashier would be classified as............. A7 To state that the auditor has a responsibility to prevent fraud 1........... A8 Where the auditor considers that there is a ask of fraudulent financial reporting, the risk would be considered to be a.......... A9 To state that an increased risk of fraudulent financial reporting would generally result in stricter performance materiality, i............ A10 Authorising a journal entry designed to manipulate an account balance is a form of.......... List B B1.professional scepticism B2 .......incentive/pressure B3 ......misappropriation of assets and employee fraud B4......fraud risk factors B5 Significant risk B6 ..fraudulent financial reporting and management fraud B7......true B8 B9 .Management override Intention (of the perpetrator) B10..........false YOU ARE REQUIRED TO select the part of the sentence from List B which, when matched to a part of the sentence from List A, forms a complete and correct statement.