In connection with the examination of
financial statements, an independent auditor
could be responsible for failure to detect a
material fraud if
a. Accountants performing important parts
of the work failed to discover a close
relationship between the treasurer and
the cashier.
b. The auditor planned the work in a
hasty and inefficient manner.
c. Statistical sampling techniques were not
used on the audit engagement.
d. The fraud was perpetrated by one client
employee, who circumvented the
existing internal control
financial statements, an independent auditor
could be responsible for failure to detect a
material fraud if
a. Accountants performing important parts
of the work failed to discover a close
relationship between the treasurer and
the cashier.
b. The auditor planned the work in a
hasty and inefficient manner.
c. Statistical sampling techniques were not
used on the audit engagement.
d. The fraud was perpetrated by one client
employee, who circumvented the
existing internal control