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:

Sociocultural Perspective

An approach in psychology that examines how societal and cultural influences impact human behavior and mental processes.

Customs

Traditional practices or behaviors that are characteristic of a specific society, place, or time, often relating to the conduct of everyday life.

Beliefs

Cognitive representations about the world, oneself, or others, that are accepted by an individual as true or existing.

Evolutionary Psychology

A theoretical approach in the social and natural sciences that examines psychological structure from a modern evolutionary perspective.