Risk factors

During which stage do we have to assess risk factors including fraud risk factors?

• Risk assessment procedures
• Preliminary activities
• Respond to risks
• All of the above

Which of the following is not taken into consideration while categorizing risk factors?

• Likelihood of errors
• Magnitude of errors
• Factors creating doubts on going concern.
• Risk due to insignificant misstatements

What is the purpose to analyze risk factors?

• ascertainment of SCOT+ transactions
• ascertainment of SCOT+ account balances
• Linking of ROMM to FS level and assertion level.
• All of the above

Which of the mentioned is not an example of risk factors in any business?

• Installation of new IT system
• Disposal of product line
• reasonable cash at year end
• Large business failures in same industry

Is conducting an inquiry with the management enough to have a susceptibility of presence of fraud?

• Yes
• No

Lack of sufficient working capital to continue operations. Which of the category this risk factor relates to?

• Could increase the risk of error
• Indication of fraud and Cast significant doubt on going concern
• Cast significant doubt on going concern
• All of the above

A situation where a company has no distinction between personal and business transactions is an example of which fraud factor?

• Management bias
• Opportunities in fraudulent financial reporting
• Rationalization in missappropriation of assets
• None of the above

Which of the following could be done to identify presence of fraud risk factors?

• Inquiries with the personnel/ employees
• Brainstorming within the ET
• Both A & B
• None of the above