Which of the following is a specific audit procedure that would be completed in response to a particular fraud risk in an account balance or class of transactions?
a. Exercising more professional skepticism.
b. Carefully avoiding conducting interviews with people in areas that are most susceptible to fraud.
c. Performing procedures such as inventory observation and cash counts on a surprise or unannounced basis.
d. Studying management’s selection and application of accounting principles more carefully.