Which of the Following Statements Best Describes the Auditor's Responsibility

question 16

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 non-performance of audit procedures specifically described in the engagement letter.
• B) The auditor must extend auditing procedures to actively search for evidence of fraud in all situations.
• C) The auditor should design auditing procedures to provide reasonable assurance that fraud material to the financial report is detected.
• D) The auditor is responsible for the failure to detect fraud only when an unmodified opinion is issued.

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Definitions:

Sequence

An ordered list of elements or events that follow a specific pattern or arrangement.

Homo Erectus

An extinct species of hominid that lived from the end of the Pliocene epoch to the early Pleistocene, known for being one of the first to use fire and simple tools.

Homo Habilis

An extinct species of early human that lived in Africa, known for using stone tools.

Neurons

Specialized cells within the nervous system that transmit information to other nerve cells, muscle cells, or gland cells, primarily through electrical and chemical signals.