Which of the Following Statements Reflects an Auditor's Responsibility for Detecting

question 604

Multiple Choice

Which of the following statements reflects an auditor's responsibility for detecting errors and fraud?

• A) An auditor is responsible for detecting employee errors and fraud, but not for discovering fraud involving employee collusion or management override.
• B) An auditor should plan the audit to detect errors and fraud that are caused by departures from GAAP.
• C) An auditor is not responsible for detecting errors and fraud unless the application of GAAS would result in such detection.
• D) An auditor should design the audit to provide reasonable assurance of detecting errors and fraud that are material to the financial statements.

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Definitions:

Semi-Reclined Position

A position where the individual is lying back at an angle, elevating the upper body to some degree, which can aid in breathing and digestion.

Chronic Obstructive Pulmonary Disease

A group of lung conditions that block airflow and make breathing difficult, including emphysema and chronic bronchitis.

Arterial Oxygen Saturation

A measure of the percentage of hemoglobin binding sites in the bloodstream occupied by oxygen.

Respiratory Rate

This is the number of breaths taken per minute and is an important vital sign in assessing a person's respiratory health.