Auditing Standards Regarding the Detection of Illegal Acts Clearly State

question 67

Multiple Choice

Auditing standards regarding the detection of illegal acts clearly state that the auditor provides

• A)no assurance that they will be detected.
• B)the same reasonable assurance provided for other items.
• C)assurance that they will be detected,if material.
• D)assurance that they will be detected,if highly material.

---

Definitions:

Bank Reconciliation

The process of comparing and adjusting an entity’s accounting records with the bank statements to ensure accuracy and consistency.

Monthly Basis

A regular interval or frequency of events or assessments occurring once every month.

Proving Accuracy

The process of ensuring that financial records and transactions are correct, precise, and free from error.

Cash Records

Documentation and tracking of all cash transactions, including receipts and expenditures, crucial for accurate financial reporting.