Question
Isn't the auditor's primary responsibility to detect all kinds of fraud at the client? A. No. Fraud is a broad legal concept that describes any
Isn't the auditor's primary responsibility to detect all kinds of fraud at the client?
A. No. Fraud is a broad legal concept that describes any intentional deceit meant to deprive another person or party of their property or rights. An auditor's primary responsibility is to express an opinion on the financial statements in accordance with SAS No. 125. The auditor obtains reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error.
B. No. Fraud is a broad legal concept that describes any intentional deceit meant to deprive another person or party of their property or rights. The auditor performs auditing procedures to obtain reasonable assurance that the financial statements do not contain material misstatements, whether due to fraud or error. The auditor is taking responsibility for detecting only financial fraud.
C. Yes. Fraud is a broad legal concept that describes any intentional deceit meant to deprive another person or party of their property or rights. The auditor takes responsibility for detecting all types of fraud, even though many types of fraud do not impact the financial statements.
D. No. Fraud is a broad legal concept that describes any intentional deceit meant to deprive another person or party of their property or rights. The auditor does not take responsibility for detecting all types of fraud. Instead, the auditor performs auditing procedures to obtain reasonable assurance that the financial statements do not contain material misstatements, whether due to fraud or error. Thus, the auditor is concerned with detecting fraud that leads to a material misstatement. The auditor is not responsible for detecting fraud that does not lead to a material misstatement.
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