You are the auditor of the Oman Construction Company and have started planning for the 2020 audit engagement. As part of your planning activities, you have asked the CEO about important events during the year that might have an impact on the audit. In response, he asked you to be relaxed on auditing especially with the Chief Finance Officer because his son is seriously ill. Apparently, the child must travel regularly to the United States for expensive medical treatments. What fraud conditions are deemed present in this situation? a. None of the choices are correct b. pressure to commit fraud c. incentive to commit fraud d. rationalization to commit fraud Clear my choice
You are the auditor of the Oman Construction Company and have started planning for the 2020 audit engagement. As part of your planning activities, you have asked the CEO about important events during the year that might have an impact on the audit. In response, he asked you to be relaxed on auditing especially with the Chief Finance Officer because his son is seriously ill. Apparently, the child must travel regularly to the United States for expensive medical treatments. What fraud conditions are deemed present in this situation? a. None of the choices are correct b. pressure to commit fraud c. incentive to commit fraud d. rationalization to commit fraud Clear my choice
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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You are the auditor of the Oman Construction Company and have started planning for the 2020 audit engagement. As part of your planning activities, you have asked the CEO about important events during the year that might have an impact on the audit. In response, he asked you to be relaxed on auditing especially with the Chief Finance Officer because his son is seriously ill. Apparently, the child must travel regularly to the United States for expensive medical treatments. What fraud conditions are deemed present in this situation?
a.
None of the choices are correct
b.
pressure to commit fraud
c.
incentive to commit fraud
d.
rationalization to commit fraud
Clear my choice
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