Which of the Following Statements Best Describes Auditors' Responsibility for Detecting

question 16

Multiple Choice

Which of the following statements best describes auditors' responsibility for detecting a client's noncompliance with a law or regulation?

• A) The responsibility for detecting noncompliance exactly parallels the responsibility for errors and fraud.
• B) Auditors must design tests to detect all material noncompliance that indirectly affect the financial statements.
• C) Auditors must design tests to obtain reasonable assurance that all noncompliance with direct material statement effects are detected.
• D) Auditors must design tests to detect all noncompliance that directly affect the financial statements.

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Definitions:

Movement Parallax

Movement parallax is a depth cue that arises because objects at different distances move across the visual field at different rates relative to the observer’s motion.

Good Continuation

A principle in Gestalt psychology suggesting that elements aligned in a particular direction are perceived as a more unified whole.

Gestalt Law

Principles of perception that suggest humans naturally perceive objects as organized patterns and wholes rather than as separate components.

Figure-ground

A visual perception principle that describes how people differentiate an object (figure) from its surrounding area (ground).