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ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam CFE-Fraud-Prevention-and-Deterrence Question # 1 Topic 1 Discussion

ACFE Certified Fraud Examiner - Fraud Prevention and Deterrence Exam CFE-Fraud-Prevention-and-Deterrence Question # 1 Topic 1 Discussion

CFE-Fraud-Prevention-and-Deterrence Exam Topic 1 Question 1 Discussion:
Question #: 1
Topic #: 1

Aaron, a government auditor, is conducting a financial statement audit of a public-sector entity in accordance with the International Standards of Supreme Audit Institutions. Which of the following is TRUE regarding Aaron’s consideration of fraud during this engagement?


A.

Aaron’s audit objectives are likely narrower than those of a private-sector financial statement audit.


B.

Aaron should remain alert for fraud but does not need to consider the potential for abuse or other misconduct during the audit engagement.


C.

Aaron likely does not have the ability to withdraw from the engagement, even if fraud is identified during the audit.


D.

Aaron does not need to comply with the requirements found in International Standard on Auditing 240, as they do not apply to the engagement.


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