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

question 96

Multiple Choice

Which of the following statements best describes the auditor's responsibility regarding the detection of fraud?

• A) The auditor is responsible for the failure to detect fraud only when such failure clearly results from nonperformance of audit procedures specifically described in the engagement letter.
• B) The auditor is required to provide reasonable assurance that the financial statements are free of both material errors and fraud.
• C) The auditor is responsible for detecting material financial statement fraud, but not a material misappropriation of assets.
• D) The auditor is responsible for the failure to detect fraud only when an unqualified opinion is issued.

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Definitions:

Populists

Political parties, movements, or individuals that seek to represent the interests and concerns of the general population, often opposing the elite or established societal structures.

Black Southerners

Denotes the African American population living in the Southern United States, historically shaped by slavery, Jim Crow laws, and the Civil Rights Movement, contributing richly to Southern culture and history.

Southern Cities

Southern cities refer to urban areas located in the southern part of a country or region, often characterized by distinct cultural, historical, and climatic features from those in other parts of the country.

Organized Labor

A structured group of workers who unite to form a union or labor organization to advocate for workers' rights, better wages, working conditions, and benefits.