Which of the Following Statements Best Describes an Auditor's Responsibility

question 28

Multiple Choice

Which of the following statements best describes an auditor's responsibility to detect errors and other irregularities?

• A)An auditor should design procedures to reduce the risk of not detecting a material misstatement to an appropriately low level.
• B)An auditor is responsible to detect material errors, but has no responsibility to detect material irregularities that are concealed through employee collusion or management override of the internal control system.
• C)An auditor has no responsibility to detect errors and irregularities unless analytical procedures or tests of transactions identify conditions that would cause a reasonably prudent auditor to suspect that the financial statements were materially misstated.
• D)An auditor has no responsibility to detect errors and irregularities because an auditor is not an insurer and an audit does not constitute a guarantee.

---

Definitions:

Growth Hormone

A protein-based hormone secreted by the pituitary gland that stimulates growth, cell reproduction, and regeneration in humans and other animals.

Dwarfism

A condition characterized by short stature, often resulting from genetic or medical conditions affecting bone growth.

Graves' Disease

An autoimmune disorder that leads to an overactive thyroid gland, causing a variety of symptoms including anxiety, weight loss, and eye problems.

Cushing's Syndrome

A condition caused by prolonged exposure to high levels of cortisol, leading to symptoms such as weight gain and high blood pressure.