Which of the following does not represent a difficulty in using red flags as fraud indicators?
Which of the following does not represent a difficulty in using red flags as fraud indicators?
The difficulty in using red flags as fraud indicators does not relate to the red flags literature being well established or having a positive impact on auditing. The other options directly address common issues with red flags, such as their association with non-fraudulent situations, challenges in quantifying or evaluating them, and the context in which red flag information is gathered.
The impact seems to be indirect (on the profession and not during an engagement).