Evidence and Procedures Practice Question

Question

A test item asks for the most accurate explanation for the CPA AUD Auditing and Attestation involving fraud risk in Evidence and Procedures. Which statement is most accurate for exam purposes? (Item 165)

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. Document nothing because documentation could create follow-up questions.
3. C. Rely on informal custom instead of the applicable rule, control, or standard.
4. D. Skip verification because the previous case had the same answer.

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: Evidence and Procedures
• Objective: fraud risk

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