The risk of not detecting a misstatement resulting from fraud is greater than that resulting from error because Group of answer choices It is the responsibility of the management to detect fraud and the auditor’s responsibility is confined only to the detection of material errors The auditor designs procedures that only detect material misstatements from error Fraud involves acts designed to conceal it, such as collusion, forgery, or deliberate failure to record transactions. The professional standards do not require the auditor to discover information that is indicative of fraud
The risk of not detecting a misstatement resulting from fraud is greater than that resulting from error because Group of answer choices It is the responsibility of the management to detect fraud and the auditor’s responsibility is confined only to the detection of material errors The auditor designs procedures that only detect material misstatements from error Fraud involves acts designed to conceal it, such as collusion, forgery, or deliberate failure to record transactions. The professional standards do not require the auditor to discover information that is indicative of fraud
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The risk of not detecting a misstatement resulting from fraud is greater than that resulting from error because
Group of answer choices
It is the responsibility of the management to detect fraud and the auditor’s responsibility is confined only to the detection of material errors
The auditor designs procedures that only detect material misstatements from error
Fraud involves acts designed to conceal it, such as collusion, forgery, or deliberate failure to record transactions.
The professional standards do not require the auditor to discover information that is indicative of fraud
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