Which of the following is a specific procedural response to a particular fraud risk in an account balance or class of transactions?
a. exercising more professional skepticism
b. performing procedures such as inventory observation and cash counts on a surprise or unannounced basis
c. studying management's selection and application of accounting principles more carefully
d. carefully avoiding conducting interviews with people in the fraud-rich areas
Answer: b. performing procedures such as inventory observation and cash counts on a surprise or unannounced basis
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