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Which of the following is an acceptable response to fraud risks related to sales that were identified in an audit? A. Exercise professional skepticism when performing sales testing.B. Increase the assessment of control risk for sales.C. Increase the assessment of detection risk for sales.D. Perform additional substantive sales procedures on a surprise basis.

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Hello there!

Your question asks what is an acceptable response to fraud risks that are related to sales that are identified in an audit.

Answer: C). Increase the assessment of detection risk for sales.

The reason why answer choice "C). Increase the assessment of detection risk for sales" is the correct answer is because this is the necessary response to fraud risks in sales. There are many fraud risks that exist when it comes to sales, and this is why companies need to improve their detection risk when it comes to their sales, so that they don't end up dealing with fraud.

An audit is an inspection of someone's account. Fraud risks that are related to sales could be identified in an audit, meaning that someone could find out of there's fraud when they check someone's account. Instead of having someone check someone's audit, it's best for a company or organization to increase their assessment of detection risk so that they can detect fraud in sales more conveniently.

I hope this helps!

Best regards, MasterInvestor

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