Consider the following statements and explain why they may be true or false:

(a) Auditors are responsible for detecting fraud in a company’s financial statements.

(b) The implementation of a sound system of internal control by directors should reduce the likelihood of fraud.

(c) On discovering that a fraud is being carried out by a particular individual, the auditors should report their findings to that individual’s immediate superior.

(d) The application of the going concern concept by a company implies that it will continue trading for the indefinite future.

(e) Auditors have the prime responsibility to determine if a company is a going concern.

(f) Where auditors have significant doubts about whether a company is a going concern they should report their concerns in their audit report.