Which of the Following Statements BEST Describes the Auditor's Responsibility

question 14

Multiple Choice

Which of the following statements BEST describes the auditor's responsibility regarding the detection of fraud? The auditor has

• A) equal responsibility for detecting errors, fraud, and indirect-effect illegal acts.
• B) greater responsibility for detecting material errors than fraud.
• C) greater responsibility for detecting material errors than fraud and direct-effect illegal acts.
• D) equal responsibility for detecting errors, fraud, and direct-effect illegal acts.

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Definitions:

Creditors

Entities or individuals to whom a company owes money, due to the provision of goods, services, or loans.

Technical Services

Specialized services that require technical expertise or skills, often provided in fields such as IT, engineering, or maintenance.

Fair Value

The selling price of an asset or the expense involved in handing over a liability during a regulated deal with participants in the market on the specified valuation date.

Carrying Amount

The book value of an asset or liability on a company's balance sheet, reflecting its original cost adjusted for any depreciation, amortization, or impairment costs.