Integration of Fraud Risk Assessment in Audits:
The fraud risk assessment provides valuable input but does not replace the auditor’s independent responsibility to identify and assess fraud risks.
Why B is Correct:
Professional auditing standards require auditors to perform their own risk assessments, and the fraud risk assessment is only a tool to enhance this process.
Why Other Options are Correct:
A, C, and D reflect appropriate uses of fraud risk assessments in the audit process, such as increasing awareness and designing effective audit tests.
References for All Questions:
ACFE Code of Professional Ethics and Fraud Examination Guide.
COSO frameworks for corporate governance and fraud risk management.
Standards for incorporating fraud risk assessments into the audit process.
