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:

Involvement

The degree of interest, participation, or engagement that an individual or group has in a particular activity or situation.

Acute Stressors

Short-term events or situations that require immediate attention and can lead to stress responses in individuals.

Single Occurrence

An event or circumstance that happens only once, not part of a series or repeated pattern.

Persist

Refers to continuing steadily or firmly in a course of action in spite of difficulty or opposition.