In Connection with the Audit of Financial Statements, an Independent

question 64

Multiple Choice

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

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

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Definitions:

Discrimination

Unjust treatment or prejudicial attitudes toward individuals based on characteristics such as race, age, sex, or disability.

Employer Accused

A situation where an employer is alleged to have engaged in improper or illegal actions, typically requiring investigation or legal action.

Organizational Psychologist

A specialist in psychology who applies psychological theories and principles to organizations, focusing on improving workplace productivity, culture, and the well-being of employees.

Worker Satisfaction

The degree to which employees are content with their jobs, which can affect their performance and retention.