Question

When fraud risk factors are identified during an audit, the auditor's documentation should include The Risk Factors Identified

The Risk Factors ------------The Auditor's Response to
Identified ------------------The Risk Factors Identified
(1) Yes Yes
(2) Yes No
(3) No Yes
(4) No No

Answer 1

When fraud risk factors are identified during an audit, the auditor's documentation should include the risk factors identified and the auditor's response to the identified risk factors.

Step-by-step explanation:

The correct answer is (1) Yes Yes.

1. The auditor's documentation should include the risk factors identified.
2. The auditor's documentation should also include the auditor's response to the identified risk factors.
3. Therefore, both of these options should be marked as 'Yes'.