Which of the Following Statements Reflects an Auditor's Responsibility for Detecting

question 31

Multiple Choice

Which of the following statements reflects an auditor's responsibility for detecting fraud?

• A)An auditor is not responsible for discovering fraudulent acts involving employee collusion.
• B)The audit should be planned to detect only fraud caused by departures from GAAP.
• C)An auditor is only responsible for detecting fraudulent financial reporting.
• D)An auditor should design the audit to provide reasonable assurance of detecting errors and fraud that are material to the financial statements.

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Definitions:

Pineal Gland

A small endocrine gland in the brain that produces melatonin, a hormone that affects the modulation of wake/sleep patterns and photoperiodic (seasonal) functions.

Pituitary Gland

A small endocrine gland located at the base of the brain, responsible for the production and release of hormones that regulate various bodily functions.

Hormones

Chemical messengers produced by glands in the endocrine system, traveling through the bloodstream to target organs, affecting various physiological processes and behaviors.

Epithelial Cells

Cells that line the surfaces of the body, including skin, blood vessels, urinary tract, and organs, serving as a barrier and creating an interface with the environment.