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.

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