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Alicia, a government auditor, is conducting a financial statement audit of a public-sector entity in...

ACFE CFE-Fraud-Prevention-and-Deterrence Full Course Access
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Alicia, 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 Alicia’s consideration of fraud during this engagement?

A.

In conducting the audit, Alicia’s objectives are likely narrower than those of a private-sector financial statement audit.

B.

Alicia must comply with the requirements found in International Standard on Auditing 240 as they apply to both private- and public-sector audits.

C.

Alicia should focus on potential fraud and does not need to consider the possibility of abuse or other misconduct during the audit engagement.

D.

If Alicia identifies fraud during the audit engagement, she must immediately withdraw from the engagement.

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