Which of the Following Statements About Fraud Is True

question 116

Multiple Choice

Which of the following statements about fraud is true?

• A)Unless auditors can provide assurance that the financial statements are free of material misstatements due to fraud,there is no justification for the audit function.
• B)The AICPA has mandated that the auditor take on more responsibility than previously required because of management's demand for fraud detection.
• C)It is the responsibility of the auditor to provide internal control over a client organization sufficient to discover or prevent fraud from occurring.
• D)Auditor-initiated fraud is a large concern of shareholders and the audit committee must continually monitor the auditors to ensure they are not misstating financial statements.

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Definitions:

Group Process

The sequence of interactions and dynamics that occur within a team or collective as they work towards a common objective.

Member Satisfaction

The degree to which members of a group or organization are content with the experiences and outcomes of their participation.

Heterogeneous Team

consists of members with diverse backgrounds, skills, and perspectives, which can enhance creativity, problem-solving, and innovation within the group.

Gratification

A sense of pleasure or satisfaction gained from achieving something or fulfilling a desire.