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

question 18

Multiple Choice

Which of the following statements best describes the auditor's responsibility regarding the detection of fraud?

• A)The auditor must extend auditing procedures to actively search for fraud.
• B)The auditor is responsible for the failure to detect fraud only when an unmodified auditor's opinion is issued.
• C)The auditor is responsible for fraud when such failure results from non-performance of procedures described in the engagement letter.
• D)The auditor must plan the audit so as to have a reasonable expectation of discovering material fraud.

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Definitions:

Hybrid Strategy

A strategy in business that incorporates aspects of various tactics, like being the cost leader and offering unique products or services, in order to gain an edge over competitors.

Order Costs

Expenses associated with placing and receiving orders, often including shipping, handling, and procurement expenses.

Retailer

A business entity that sells goods to consumers for personal or household use, varying from small shops to large chain stores.

Hybrid Strategy

A competitive strategy that combines elements of both cost leadership and differentiation to create a unique market position and appeal to a broad range of customers.