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Internal auditors must exercise due care if they are to meet their responsibilities for fraud detection. Thus, the existence of certain conditions should raise auditor’s professional scepticism concerning possible fraud . Which of the following is most likely to be considered as an indication of possible fraud?A . A new...

A payroll clerk with authorised access to the local area network (LAN) was able to update personnel files directly, independent of the application programmes. The best control to prevent a clerk from doing this would be toA . Restrict access to LAN workstations by such means as automatic lock-up after...

Acer Ltd is a client of your firm and is seeking funding in order to expand the business. The directors have prepared profit and cash flow forecasts for the next three years ending 30 June 2016 in support of the request for funding. The company’s bankers require this information to...

The auditor of Net plc carried out an external confirmation of receivables at the year end to confirm the accuracy of total trade receivables in the balance sheet at that date. Two of the replies to the confirmations disagreed the balance. For each of these two disagreements, select whether the...

After partially completing an internal control review of the accounts payable department, the auditor suspects that some type of fraud has occurred. To ascertain whether the fraud is present, the best sampling approach would be to useA . Simple random sampling to select a sample of vouchers processed by the...