Question

All information that we are aware of regarding [no knowledge of any] fraud or suspected fraud that affects the entity involving

a) Materiality assessment
b) Legal compliance check
c) Fraud risk assessment
d) Internal control evaluation

Answer 1

In the context of fraud, important activities include materiality assessment, legal compliance check, fraud risk assessment, and internal control evaluation.

Step-by-step explanation:

In the context of fraud or suspected fraud that affects the entity, the following activities are important:

1. Materiality assessment: This involves determining the significance of financial information and transactions to the overall financial statements. It helps identify potential fraud risks related to misstatements that could have a material impact.
2. Legal compliance check: This involves evaluating whether the entity is adhering to relevant laws, regulations, and industry standards. Non-compliance with laws can indicate fraud.
3. Fraud risk assessment: This involves identifying and evaluating the specific risks of fraudulent activities within the entity. It helps determine the likelihood and potential impact of fraud occurring.
4. Internal control evaluation: This involves assessing the effectiveness of an entity's internal controls in preventing and detecting fraud. Properly designed and implemented internal controls can deter and detect fraudulent activities.