Question
During audit, you find multiple vendors created under
similar names, with round-sum payments made regularly below approval thresholds. Management insists they are genuine. As per SA 240, what is the auditor’s appropriate response?Solution
Fraud indicators require expanded audit procedures (external confirmation, trend analysis, data mining) before concluding.
Statements:
Only a few Song are Music
Only Music are Composer
No Lyric are Music
Conclusions:Statements: Some books are novels.
                               Some books are eraser.
      ...
Statements: Some printers are monitors.
All monitors are modems.
Some modems are keyboards.
Conclusions: I. Some keyboards are no...
Statements:
Only a few Fried are Smoky
Mostly Smoky are Burner
Only Burner are Roaster
Conclusion:
I. All Smoky are R...
Statements:
Some water is liquid.
Some liquid is milk.
No ice is milk.
Conclusions:
I. Some water is milk.
Statements: No bike is a car.
                          All car are cycle.
 Conclusions: I. Some cycle are n...
Statements:
8% rays are satellites.
All satellites are planets.
A few stars are satellites.
Conclusions:
I. All stars...
Read the given statements and conclusion carefully. Assuming the information given in the statement is true, even if it appears to be at variance with ...
Statements:
Some files are folders.
No folders are plastics.
All plastics are bags.
Conclusions:
I. S...
In the question below some statements are given followed by three conclusions I, II and III. You have to take the given statements to be true even if t...
