In Connection with the Examination of Financial Statements, an Independent

question 11

Multiple Choice

In connection with the examination of financial statements, an independent auditor could be responsible for failure to detect a material fraud if:

• A) the auditor performing important parts of the work failed to discover a close relationship between the treasurer and the cashier.
• B) statistical sampling techniques were not used on the audit engagement.
• C) the auditor planned the work in a hasty and inefficient manner.
• D) the fraud was perpetrated by one trusted client employee, who circumvented the existing internal controls.

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