Which of the Following Statements BEST Describes the Auditor's Responsibility

question 84

Multiple Choice

Which of the following statements BEST describes the auditor's responsibility regarding the detection of fraud?

• A) The auditor has greater responsibility for detecting material errors than fraud and direct- effect illegal acts.
• B) The auditor has equal responsibility for detecting errors, fraud and direct- effect illegal acts.
• C) The auditor has greater responsibility for detecting material errors than fraud.
• D) The auditor has equal responsibility for detecting errors, fraud and indirect- effect illegal acts.

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Definitions:

Interest Payments

Payments made to lenders as compensation for the use of borrowed money, typically calculated as a percentage of the principal amount.

Interest Rates

The cost of borrowing money or the return on investment capital, expressed as a percentage of the money borrowed or invested.

Loan

A borrowed sum of money that is expected to be paid back with interest.

Single Tax

A fiscal system proposing a single tax as the primary or sole source of public revenue, often associated with taxing land value.