The following questions address fraud risk factors and the assessment of fraud risk.

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Part 1

a. Which action regarding fraud is an activity related to performance of risk assessment procedures?

1.

Document the results of procedures used to address the risk of fraud.

2.

Discussions among the engagement team members regarding the risks of material misstatement due to fraud.

3.

Consider the characteristics of journal entries, particularly those made near year end.

4.

Consider whether estimates prepared and recorded by management could indicate a bias in reporting.