Problem:
Based on my textbook, I can not find concrete information to support questions. For me cash cycle would be most important. Auditors should not be liable, comparing the outputs against documents and inputs can identify frauds, and testing the internal controls provides opportunities to establish the validity of the processes/procedures.
What can you share? Thanks,
(1) Which cycle do you consider to be the most important to test? Why?
(2) If some frauds are deemed common, should auditors be held liable if they do not find a common fraud? Why or why not?
(3) What is the best way to identify high fraud risk areas? Why?
(4) Which are more important, tests of controls or substantive tests? Why?