Practice Quiz

Forensic Accounting

Category - Fundamental Forensic Knowledge

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There are certain safeguards that limit the threats to the fundamental principles related to planning and preparation. Which of the following is NOT part of these?
  1. Acquiring understanding of client’s business
  2. Overlooking client’s advice prior to starting the engagement
  3. Double-checking the competency of the staff you are planning to employ
  4. Using the services of an expert, when required
Explanation
Answer: B - Clients’ advice has nothing to do with the fundamental principles related to audit and preparation. In terms of safeguards, adhering to or sidelining client’s advice doesn’t affect the safeguards that are in place. However, all the other aspects including understanding the entity, competence level of the staff there in, and the services of experts must be thoroughly and strictly worked upon.
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