Internal auditors must exercise due care if they are to meet their responsibilities for fraud detection. Thus, the existence of certain conditions should raise auditor’s professional scepticism concerning possible fraud .
Which of the following is most likely to be considered as an indication of possible fraud?
A . A new management team installed as the result of a takeover.
B . Rapid turnover of financial executives.
C . Rapid expansion into new markets.
D . Tax authorities’ audit of tax returns.
Answer: B