According to the CPA Handbook, the Auditor's Responsibility for Failure

question 55

Multiple Choice

According to the CPA Handbook, the auditor's responsibility for failure to detect fraud arises

• A) when such failure clearly results from failure to comply with generally accepted auditing standards.
• B) whenever the amounts involved are material.
• C) only when the examination was specifically designed to detect fraud.
• D) only when such failure clearly results from negligence so gross as to sustain an inference of fraud on the part of the auditor.

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Definitions:

Tax

An obligatory fiscal contribution or another kind of tax levied on an individual by a government authority to support government budgets and various public spending.

Price Paid

The amount of money that is exchanged for a good or service.

Sellers

Individuals or entities that offer goods or services in exchange for payment or other compensation.

Rent Control

A government policy or regulation that sets a maximum price landlords can charge for rent, aimed at making housing more affordable.