Why Is Fraud Detection an Important Part of the Audit

question 30

Multiple Choice

Why is fraud detection an important part of the audit?

• A)Auditors are required to seek out and find all fraud,regardless of its magnitude.
• B)Auditors expect that management will make them aware of any fraud in the financial statements.
• C)Society expects that financial statements have not been materially misstated due to fraud.
• D)Society realizes that some fraud was not intended to be discovered by auditors.

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Constituency

A group of voters in a specified area who elect a representative to a legislative body.

Acquire Resources

The act of obtaining necessary materials, finances, or personnel needed to accomplish a goal or execute a project.

Fundamental Consequences

The basic or primary outcomes that result from certain actions or decisions.

Increasing Number

A growing quantity or count of items or entities.