Auditors Are Responsible to Fraud Even If It Has an Immaterial

question 25

True/False

Auditors are responsible to fraud even if it has an immaterial effect on the financial statements.

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Definitions:

Parol Evidence Rule

A legal principle that prevents parties from using oral or extrinsic evidence to contradict, vary, or add to the terms of a written contract.

Subsequent Agreements

Agreements made after the initial agreement, which may modify or affirm the conditions of the first.

Integrated Contract

A contract in which multiple documents or agreements are combined and considered to be parts of a single binding agreement.

Statute of Frauds

A legal concept that requires certain types of contracts to be in writing and signed by the parties to be enforceable.