Detection of Fraud Is Integral to the Audit Function

question 64

Multiple Choice

Detection of fraud is integral to the audit function.The best reason for this is that:

• A)unless auditors can provide assurance that the financial statements are free of material misstatements due to fraud,there is no justification for the audit function.
• B)the AICPA has mandated that the auditor take on more responsibility than previously required because of management's demand for fraud finding.
• C)it is the responsibility of the auditor to provide internal control over a client organization sufficient to discover or prevent fraud from occurring.
• D)auditor fraud is a large concern of shareholders and the audit committee must continually monitor the auditors to ensure they are not misstating financial statements.

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Definitions:

Dendrites

Branch-like extensions of neurons that receive signals from other nerve cells and are integral for brain communication.

Neurotransmitters

Chemical substances in the nervous system that transmit signals across a synapse from one neuron to another, influencing mental states and behavior.

Alleles

Variants of a gene that occur at the same place on a chromosome, contributing to the diversity of traits in a population.

Dominant

Pertaining to a trait, allele, or characteristic that overrides or masks another in genetic expression.