Which of the following is true statement regarding professional skepticism?

Auditors reject most potential clients perceived as lacking honesty and integrity.

If the auditor has past experience with a client, they can assume the client is honest.

Material frauds occur in most of the audits of financial statements.

Professional skepticism is required only during the planning phase.

In the fraud triangle, fraudulent financial reporting and misappropriation of assets

		share little in common.
		share most of the same risk factors.
		share the same three conditions of the fraud triangle.
		share most of the same conditions. of the fraud triangle.

Which party has the primary responsibility to oversee an organization's financial reporting and internal control process?

the board of directors

the audit committee

management of the company

the financial statement auditors

Which of the following is a form of earnings management in which revenues and expenses are shifted between periods to reduce fluctuations in earnings?

		fraudulent financial reporting
		expense smoothing
		income smoothing
		Each of the above is correct.