The auditor also assesses fraud risk as part of risk assessment procedu during audit planning. You have been invited by the audit partner on the P ment to participate in the fraud brainstorming session conducted as part ning. The purpose of Part IIl is to identify fraud risks and the response in the audit of Pinnacle Manufacturing. re innacle of audit plan- to these fraud risks a. Use the fraud triangle and information from Parts I and II of this b. Identify one or more fraud risks that you believe exist due to the nature of Pinnacl c. Auditors must generally identify a fraud risk for revenue recognition. Indicate at leas ired ca se to identify incentives/pressures, opportunities, and attitudes/rationalizations for P engage in fraudulent financial reporting e's industry. Indicate the accounts most likely to be affected by the identified fraud risks. two ways that Pinnacle might engage in revenue recognition fraud. Identify the spe cific nature of the potential fraud and an audit procedure that you would performto determine whether fraud is occurring. d. In Part I of this case you performed preliminary analytical procedures on Pinnacle's financial statements. Identify changes in account balances or ratios that you believe indicate the potential for fraud, and describe the nature of the potential fraud. e. Part II of the case includes 11 situations that you encountered in audit planning For each situation, describe whether it indicates a potential fraud risk. For each potential fraud risk, identify the related fraud risk triangle element(s). The auditor also assesses fraud risk as part of risk assessment procedu during audit planning. You have been invited by the audit partner on the P ment to participate in the fraud brainstorming session conducted as part ning. The purpose of Part IIl is to identify fraud risks and the response in the audit of Pinnacle Manufacturing. re innacle of audit plan- to these fraud risks a. Use the fraud triangle and information from Parts I and II of this b. Identify one or more fraud risks that you believe exist due to the nature of Pinnacl c. Auditors must generally identify a fraud risk for revenue recognition. Indicate at leas ired ca se to identify incentives/pressures, opportunities, and attitudes/rationalizations for P engage in fraudulent financial reporting e's industry. Indicate the accounts most likely to be affected by the identified fraud risks. two ways that Pinnacle might engage in revenue recognition fraud. Identify the spe cific nature of the potential fraud and an audit procedure that you would performto determine whether fraud is occurring. d. In Part I of this case you performed preliminary analytical procedures on Pinnacle's financial statements. Identify changes in account balances or ratios that you believe indicate the potential for fraud, and describe the nature of the potential fraud. e. Part II of the case includes 11 situations that you encountered in audit planning For each situation, describe whether it indicates a potential fraud risk. For each potential fraud risk, identify the related fraud risk triangle element(s)
