In Searching for Breakdowns of Internal Controls by Collusion and Fraud

Multiple Choice

In searching for breakdowns of internal controls by collusion and fraud, auditors:

A) should check all journal entries made on holidays, weekends, and late at night.
B) should discuss with employees any journal entry which has been made to reduce liabilities or increase owners' equity.
C) should verify all journal entries and values associated with consolidations which resulted for work within spreadsheets.
D) should obtain an understanding of the internal control processes regarding journal entries and other adjustments.