Which of the following statements best
describes the auditor's responsibility
regarding the detection of material errors
and frauds?
a. The auditor is responsible for the failure
to detect material errors and frauds only
when such failure results from the
misapplication of generally accepted
accounting principles.
b. The auditor is responsible for the failure
to detect material errors and frauds only
when the auditor fails to confirm
receivables or observe inventories.
c. The audit should be designed to
provide reasonable assurance that
material errors and frauds are
detected.
d. Extended auditing procedures are
required to detect unrecorded
transactions even if there is no evidence
that material errors and frauds may exist
describes the auditor's responsibility
regarding the detection of material errors
and frauds?
a. The auditor is responsible for the failure
to detect material errors and frauds only
when such failure results from the
misapplication of generally accepted
accounting principles.
b. The auditor is responsible for the failure
to detect material errors and frauds only
when the auditor fails to confirm
receivables or observe inventories.
c. The audit should be designed to
provide reasonable assurance that
material errors and frauds are
detected.
d. Extended auditing procedures are
required to detect unrecorded
transactions even if there is no evidence
that material errors and frauds may exist