Question

Which of the following is least likely to be included in an auditor's inquiry of management while obtaining information to identify the risks of material misstatement due to fraud?

A) Are all financial reporting operations at one location?
B) Does it have knowledge of fraud or suspect fraud?
C) Does it have programs to mitigate fraud risks?
D) Has it reported to the audit committee the nature of the company's internal control?

Answer 1

Option A) Are all financial reporting operations at one location? is least likely to be included in an auditor's inquiry of management while obtaining information to identify the risks of material misstatement due to fraud.

Step-by-step explanation:

An auditor's inquiry of management plays a crucial role in identifying the risks of material misstatement due to fraud. While obtaining information, auditors may ask management about various aspects related to fraud risks. However, out of the given options, the least likely to be included in an auditor's inquiry is option A) Are all financial reporting operations at one location?