Forensic 8 - Question 1 1 out of 4 points Assume that you...

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Question 1 1 out of 4 points Assume that you are an auditor and as part of your routine audit, you discover a fraud being committed by the accounts receivables manager. The fraud is large enough to have a material impact on the financial statements. How does this finding affect the rest of your audit? Answer Selected Answer: The auditor's report issued under these circumstances differs from the standard auditor's report. The scope and opinion paragraphs refer to the element, account, or item being audited, not the financial statements and, if the element, account, or item was audited to determine compliance with a contract, the auditor includes a separate paragraph restricting use of the report. Correct Answer: The presence of fraud can affect the extent of testing and the audit procedures (acts performed by the auditor) to gather evidence; if fraud is suspected, the preliminary judgment of materiality selected will probably be lower than it would be otherwise. This affects the amount of testing: The lower the level of materiality is, the higher is the amount of testing that must be performed. The suspicion of fraud also affects audit procedures
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Forensic 8 - Question 1 1 out of 4 points Assume that you...

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