A Properly Planned and Performed Audit May Fail to Detect

question 55

Multiple Choice

A properly planned and performed audit may fail to detect a material misstatement resulting from fraud because:

• A)audit procedures that are otherwise effective may be ineffective for fraud that is concealed through collusion.
• B)an audit is planned and performed to provide reasonable assurance of detecting material misstatements caused by errors but not by fraud.
• C)the factors considered in assessing control risk indicated an increased risk of error but only a low risk of fraud in the financial statements.
• D)the auditor did not consider factors influencing audit risk for account balances that have effects pervasive to the financial statements taken as a whole.

---

Definitions:

Stress Hormones

Chemical substances, such as cortisol and adrenaline, released by the body in response to stressors, affecting bodily functions to handle stress.

Premature Birth

The birth of a baby before 37 completed weeks of gestation, often leading to health challenges.

Epigenetic Marks

Chemical modifications to DNA and histone proteins that affect gene expression without altering the DNA sequence, impacting development and health.

Allergic

Having an immune response to a substance that most people tolerate well.