Which of the following statements reflects
an auditor’s responsibility for detecting
misstatements due to errors and fraud?
a. An auditor is responsible for detecting
employee errors and simple fraud, but
not for discovering fraud involving
employee collusion or management
override.
b. An auditor should design the audit
to provide reasonable assurance of
detecting misstatements due to
errors and fraud that are material to
the financial statements.
c. An auditor should plan the audit to detect
misstatements due to errors and fraud
that are caused by departures from
GAAP.
d. An auditor is not responsible for
detecting misstatements due to errors
and fraud unless the application of GAAS
would result in such detection.
an auditor’s responsibility for detecting
misstatements due to errors and fraud?
a. An auditor is responsible for detecting
employee errors and simple fraud, but
not for discovering fraud involving
employee collusion or management
override.
b. An auditor should design the audit
to provide reasonable assurance of
detecting misstatements due to
errors and fraud that are material to
the financial statements.
c. An auditor should plan the audit to detect
misstatements due to errors and fraud
that are caused by departures from
GAAP.
d. An auditor is not responsible for
detecting misstatements due to errors
and fraud unless the application of GAAS
would result in such detection.