ACFE Exam CFE-Fraud-Prevention-and-Deterrence Topic 3 Question 87 Discussion

Actual exam question for ACFE's CFE-Fraud-Prevention-and-Deterrence exam

Question #: 87
Topic #: 3

[All CFE-Fraud-Prevention-and-Deterrence Questions]

During an external audit, the audit team identifies evidence that management has Intentionally manipulated the organization's reported revenue amount However, the amount of the resulting misstatement does not meet the quantitative materiality threshold for the audit. Which of the following is TRUE regarding this situation?

AThe auditors should reconsider the reliability of the audit evidence they have previously obtained.

BThe auditors should assume that all audit evidence collected previously is unreliable and withdraw from the audit engagement.

CThe auditors should only consider the evidence if they can determine that the actions meet the legal definition of fraud.

DThe auditors should regard the misstatement as immatenal to the audit because the omitted amount is less than the quantitative materiality threshold

Show Suggested Answer

Suggested Answer: B

by Tamera at Jul 02, 2024, 04:18 AM

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