In connection with the examination of financial statements by applying PSA 240 & 300, an independent auditor could be responsible for failure to detect a material fraud if Select one: a. statistical sampling techniques were not used on the audit engagement. b. accountants performing important parts of the work failed to discover a close relationship between the treasurer and the cashier. c. the auditor planned the work in a hasty and inefficient manner. d. the fraud was perpetrated by one client employee, who circumvented the existing internal controls.
In connection with the examination of financial statements by applying PSA 240 & 300, an independent auditor could be responsible for failure to detect a material fraud if Select one: a. statistical sampling techniques were not used on the audit engagement. b. accountants performing important parts of the work failed to discover a close relationship between the treasurer and the cashier. c. the auditor planned the work in a hasty and inefficient manner. d. the fraud was perpetrated by one client employee, who circumvented the existing internal controls.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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In connection with the examination of financial statements by applying PSA 240 & 300, an independent auditor could be responsible for failure to detect a material fraud if
Select one:
a. statistical sampling techniques were not used on the audit engagement.
b. accountants performing important parts of the work failed to discover a close relationship between the treasurer and the cashier.
c. the auditor planned the work in a hasty and inefficient manner.
d. the fraud was perpetrated by one client employee, who circumvented the existing internal controls.
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