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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