Management fraud (e. g., fraudulent financial reporting) is a relatively rare event. however, when it does occur, the frauds (e. g., enron and worldcom) can have a significant effect on shareholders, employees, and other parties. au-c 240, consideration of fraud in a financial statement audit, provides the relevant guidance for auditors. c. select the items that are most likely to be objectives of the "brainstorming" meeting that is held among the engagement team members: