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:

Prediabetes

A condition where blood sugar levels are higher than normal but not yet high enough to be diagnosed as type 2 diabetes, indicating a high risk for developing diabetes.

Complications

Secondary conditions, diseases, or symptoms that develop in addition to an initial disease or condition, often exacerbating the situation or making treatment more difficult.

Cardiovascular Disease

A class of diseases that involve the heart or blood vessels, often related to atherosclerosis or plaque buildup.

Hip Area

An anatomical region involving the hip joint and surrounding structures, crucial for supporting the body's weight in both static and dynamic postures.