With Respect to Fraud and Error, Which of the Following

question 14

Multiple Choice

With respect to fraud and error, which of the following should be part of an auditor's planning of the audit engagement?

• A) Plan to search for fraud or errors that would have a material or immaterial effect on the financial report.
• B) Plan to search for fraud or errors that would have a material effect on the financial report.
• C) Plan to discover fraud or errors that are material.
• D) Plan to discover fraud or errors that are either material or immaterial.

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Definitions:

Ethical Lapse

A temporary failure to maintain ethical standards, resulting in behavior that is morally wrong or violates company policies.

Transparency

The practice of being open, honest, and straightforward about various aspects of a business or project.

Social Media

Platforms and technologies that enable users to create, share content, and participate in social networking online.

Consumers

Individuals or groups who purchase goods and services for personal use.