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:

Achromatic Color

Colors without hue, including black, white, and all grays, essentially colors that do not appear on the color wheel and have no dominant wavelength of light.

Chromatic Color

Color that has hue, as opposed to achromatic colors (grays), resulting from a specific wavelength of visible light.

Highly Saturated

refers to a condition where a substance contains the highest possible amount of another substance, or an image with intense levels of color and clarity.

Chromatic

Relating to or using colors, typically in visual contexts, or pertaining to chromaticism in music, which involves notes outside the main scale.