Ethics, Responsibilities, and Planning Practice Question

Question

A student must apply the concept rather than define it only for the CPA AUD Auditing and Attestation involving fraud risk in Ethics, Responsibilities, and Planning. Which statement is most accurate for exam purposes? (Item 65)

Answer choices

1. A. The best answer is to select the audit response that best supports sufficient appropriate evidence, professional skepticism, and proper reporting for the fraud risk scenario.
2. B. Rely on informal custom instead of the applicable rule, control, or standard.
3. C. Skip verification because the previous case had the same answer.
4. D. Document nothing because documentation could create follow-up questions.

Correct Answer

A. The best answer is to select the audit response that best supports sufficient appropriate evidence, professional skepticism, and proper reporting for the fraud risk scenario.

Explanation

The correct answer is A because fraud risk is tested by asking candidates to select the audit response that best supports sufficient appropriate evidence, professional skepticism, and proper reporting. The distractors reflect common exam mistakes: ignoring context, using informal shortcuts, skipping verification, or applying a rule from the wrong domain.

Question details

• Difficulty: easy
• Domain: Ethics, Responsibilities, and Planning
• Objective: fraud risk

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