NEED PARAGRAPH NUMBERS!!!!!! This problem requires you to accessPCAOB Auditing Standards (pcaobus.org) to answer each of thefollowing questions. You can access those standards by viewingcontent found under the link “Standards.” For each answer, documentthe paragraph(s) in the relevant standard supporting your answer.Review PCAOB auditing standards related to the auditor’sconsideration of fraud in a financial statement audit, to answerquestions in parts a. through d. Review PCAOB Auditing Standard No.12, Identifying and Assessing Risks of Material Misstatement, toanswer parts e. and f. a. You have determined that there is a fraudrisk related to the existence and accuracy of inventory. Review theguidance in PCAOB auditing standards to provide examples of auditorresponses involving changes to the nature, timing, and extent ofaudit procedures related to this assessed fraud risk for inventory.b. What do PCAOB auditing standards say about how the auditorshould assess risk related to revenue recognition? c. What examplesof auditor responses to fraud risk related to revenue recognitionare provided in PCAOB auditing standards? d. What kind ofdocumentation is required for the auditor’s consideration of fraud?e. What kinds of inquiries about fraud risks are required by PCAOBStandard No. 12? f. How does PCAOB Standard No. 12 define “fraudrisk factors”? Do all conditions have to be present for fraud riskto exist?
