📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

  • google app store apple app store
  • ✖

      Question

      Senior executive enabled a secret fund transfer

      bypassing system controls. Auditor finds unusual executive journal entries. What next step?
      A Continue as planned Correct Answer Incorrect Answer
      B Consult senior auditor and perform extended testing Correct Answer Incorrect Answer
      C Rely on management explanation Correct Answer Incorrect Answer
      D Withdraw Correct Answer Incorrect Answer
      E Report directly to SEBI Correct Answer Incorrect Answer

      Solution

      Overriding controls triggers fraud risk response under SA 240 – escalate and increase audit procedures.

      Practice Next
      ask-question