According to SAS 99,what Is the Auditor's Responsibility for Detecting

question 17

Multiple Choice

According to SAS 99,what is the auditor's responsibility for detecting fraud in an audit?

• A)The auditor has the responsibility to prevent or detect all material misstatements.
• B)The auditor has the responsibility to test any account that may have a material misstatement.
• C)The auditor has a responsibility to perform tests to obtain reasonable assurance that the financial statements are free of material misstatement.
• D)The auditor has the responsibility to plan the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.

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Definitions:

Illegal Contract

An agreement that is void and unenforceable by law because it involves activities that are against the law or public policy.

Discharged

Refers to the completion of an obligation or debt, relieving the individual or entity of further responsibilities.

Severable Contracts

Agreements composed of independent clauses or sections, where the invalidation of one part does not necessarily void the entire contract.

Independent Contracts

Agreements between individuals or organizations where one party offers services to another as a non-employee.