Explain why auditors usually emphasize the detection of fraud inthe audit of cash receipts. Is this consistent or inconsistent with the auditor’s responsibilityin the audit? Explain.

What is the ethical value of applying the Fraud Triangle to assess the risk of material misstatements in the financial statements?

What role does the rationalization phase play in the process of financial statement fraud? A) Concealing fraudulent activities B) Initiating the fraudulent process C) Justifying unethical actions D) Exploiting weaknesses in controls

The auditor’s primary consideration is whether, and how, internal control prevents, or detects and corrects: Material misstatement of the entity’s financial statements Financial statement fraud Incentives that prompt an employee to behave improperly illegal actions of the Management

To gather audit evidence related to accounts receivable, the client should mail the confirmation requests.  TRUE OR FALSE? WHY?

The following questions concern the auditor’s responses to thepossibility of fraud.a. When fraud risk factors are identified during an audit the auditor’s documentationshould includeThe Risk The Auditor’s Response toFactors Identified The Risk Factors Identified(1) Yes Yes(2) Yes No(3) No Yes(4) No No

1. Although the primary objective of an independent audit is not the discovery of fraud, the auditors in their work on cash take into consideration the high relative associated with this asset. One evidence of this attitude is evidenced by the CPAs alertness on signs of lapping. Define lapping and explain the audit procedures that CPAs might utilize to uncover lapping.    2. What actions should be taken by auditors when the count of cash on hand discloses shortage?

Confirmation of accounts receivable is a presumptively mandatory audit procedure. In performing this procedure, auditors use positive confirmation requests or negative confirmation requests or a combination of both.   Describe three conditions that should exist for the auditors to use the negative form of request.

Explain the importance of proper credit approval for sales. Whateffect do adequate controls in the credit function have on the auditor’s evidence accumulation?

identify the primary audit objective for anaccrued liability such as Bankrates SEM accrual. what circumstances relevent to accrued liabilities can prove to be particularly challenging for auditors?