Financial misstatement may arise from fraud or error, fraud is done with intention. It means fraud is intentional not by fault. The auditor can suspect or identify fraud. Auditor should know that the risk of non-detection of management fraud is greater than of employee fraud and auditor must be aware that risk of non-detection of fraud is higher than misstatement due to error. To choose: The correct statement company can sue the auditor for not detecting fraud.

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Chapter 20, Problem 20.16MCQ

To determine

Concept Introduction:

Financial misstatement may arise from fraud or error, fraud is done with intention. It means fraud is intentional not by fault. The auditor can suspect or identify fraud. Auditor should know that the risk of non-detection of management fraud is greater than of employee fraud and auditor must be aware that risk of non-detection of fraud is higher than misstatement due to error.

To choose: The correct statement company can sue the auditor for not detecting fraud.

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Answer 2

Question

Chapter 20, Problem 20.16MCQ

To determine

Concept Introduction:

Financial misstatement may arise from fraud or error, fraud is done with intention. It means fraud is intentional not by fault. The auditor can suspect or identify fraud. Auditor should know that the risk of non-detection of management fraud is greater than of employee fraud and auditor must be aware that risk of non-detection of fraud is higher than misstatement due to error.

To choose: The correct statement company can sue the auditor for not detecting fraud.

Expert Solution & Answer

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Answer 3

Question

Chapter 20, Problem 20.16MCQ

To determine

Concept Introduction:

Financial misstatement may arise from fraud or error, fraud is done with intention. It means fraud is intentional not by fault. The auditor can suspect or identify fraud. Auditor should know that the risk of non-detection of management fraud is greater than of employee fraud and auditor must be aware that risk of non-detection of fraud is higher than misstatement due to error.

To choose: The correct statement company can sue the auditor for not detecting fraud.

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Answer 4

Question

Chapter 20, Problem 20.16MCQ

To determine

Concept Introduction:

Financial misstatement may arise from fraud or error, fraud is done with intention. It means fraud is intentional not by fault. The auditor can suspect or identify fraud. Auditor should know that the risk of non-detection of management fraud is greater than of employee fraud and auditor must be aware that risk of non-detection of fraud is higher than misstatement due to error.

To choose: The correct statement company can sue the auditor for not detecting fraud.

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Answer 5

Chapter 20, Problem 20.16MCQ

To determine

Concept Introduction:

Financial misstatement may arise from fraud or error, fraud is done with intention. It means fraud is intentional not by fault. The auditor can suspect or identify fraud. Auditor should know that the risk of non-detection of management fraud is greater than of employee fraud and auditor must be aware that risk of non-detection of fraud is higher than misstatement due to error.

To choose: The correct statement company can sue the auditor for not detecting fraud.

Answer 6

Chapter 20, Problem 20.16MCQ

To determine

Concept Introduction:

Financial misstatement may arise from fraud or error, fraud is done with intention. It means fraud is intentional not by fault. The auditor can suspect or identify fraud. Auditor should know that the risk of non-detection of management fraud is greater than of employee fraud and auditor must be aware that risk of non-detection of fraud is higher than misstatement due to error.

To choose: The correct statement company can sue the auditor for not detecting fraud.

Answer 7

Chapter 20, Problem 20.16MCQ

To determine

Concept Introduction:

Financial misstatement may arise from fraud or error, fraud is done with intention. It means fraud is intentional not by fault. The auditor can suspect or identify fraud. Auditor should know that the risk of non-detection of management fraud is greater than of employee fraud and auditor must be aware that risk of non-detection of fraud is higher than misstatement due to error.

To choose: The correct statement company can sue the auditor for not detecting fraud.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 20 - Prob. 20.1RQ Ch. 20 - Prob. 20.2RQ Ch. 20 - Prob. 20.3RQ Ch. 20 - Prob. 20.4RQ Ch. 20 - Prob. 20.5RQ Ch. 20 - Prob. 20.6RQ Ch. 20 - Prob. 20.7RQ Ch. 20 - Prob. 20.8RQ Ch. 20 - Prob. 20.9RQ Ch. 20 - Prob. 20.10RQ

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