Question

Which of the following statements is correct concerning the required documentation in working papers of fraud risk assessment undertaken by the auditor?

• A. All risk factors as mentioned in AAS-$4$, should be considered and documented along with response to them
• B. Document the identification of fraud risk factors along with response to them
• C. Document material fraud, risk factors and response to them
• D. No documentation in required

Answer 1

The correct option is B Document the identification of fraud risk factors along with response to them

Audit evidences are very important documents which form as a base of auditor's work and also his opinion on the financial statements.

In the given question, of the options given, documents contributing to fraud risk factors along with the responses are taken into consideration in case while determining the working papers when fraud risk assessment is undertaken by the auditor.