asked 106k views
4 votes
List two major characteristics that are useful in predicting the likelihood of fraudulent financial reporting in an audit for each of the characteristics state two things that the auditor can do to evaluate its significance in the engagement

1 Answer

4 votes

The two major characteristics that are useful in predicting the likelihood of fraudulent financial reporting in an audit are weak internal controls and industry conditions.

For both of these, more audit work and larger samples are ways to mitigate this risk.

answered
User Brian Hawkins
by
8.4k points
Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.

Categories