Which of the Following Statements Best Describes Auditors' Responsibility to Detect

question 48

Multiple Choice

Which of the following statements best describes auditors' responsibility to detect errors and frauds?

• A)Auditors should design an audit to provide reasonable assurance of detecting errors and frauds that are material to the financial statements.
• B)Auditors are responsible to detect material errors, but have no responsibility to detect material frauds that are concealed through employee collusion or management override of the internal control structure.
• C)Auditors have no responsibility to detect errors and frauds unless analytical procedures or tests of transactions identify conditions causing a reasonably prudent auditor to suspect that the financial statements were materially misstated.
• D)Auditors have no responsibility to detect errors and frauds because an auditor is not an insurer and an audit does not constitute a guarantee.

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Definitions:

Prospect

A potential customer or client who meets the criteria to purchase a product or service but has not yet done so.

Act Immediately

A call to action urging individuals to respond or make a decision without delay, often used in marketing to create urgency.

Suggestive Proposition Close

A sales technique where the salesperson suggests a specific action or decision for the customer, promoting a sense of urgency or benefit.

Beneficial

Having a positive effect; contributing to a favorable outcome or advantage.