95%(40)38 out of 40 people found this document helpful
This preview shows page 17 - 19 out of 19 pages.
14) When the allowance for doubtful accounts is understated, bad debt expense is understated and net income is also understated.15) Fictitious revenue transactions have the same level of documentary evidence as legitimate transactions.16) Auditors should rely on original, rather than duplicate, copies of documents.17) The two most common areas of fraud in payroll are the creation of fictitious employees and the overstatement of individual payroll hours.10.7 Learning Objective 10-7
1) To address heightened risks of fraud, the auditor can do all of the following exceptA) use specialists to assist in evaluating the accuracy and reasonableness of management's key estimates.B) decrease the amount of substantive tests.C) use ACL or IDEA to search for fictitious revenue transactions. D) use EXCEL to perform analytical procedures at the disaggregated level.2) Which of the following is least likely to uncover fraud?3) Which of the following is nota category of inquiry used by auditors?4) ________ inquiry is used to obtain information about facts and details that the auditor does not have, usually about past or current events or processes.5) An auditor uses ________ inquiry to corroborate or contradict prior information.A) assessment B) declarative C) interrogative D) informational6) When the auditor suspects that fraud may be present, auditing standards require the auditor to7) With whom should the auditor communicate whenever he or she determines that senior management fraud may be present, even if the matter might be considered inconsequential?8) Most frauds are detected by