Question 1 0.4 pts ASA 240 (ISA 240) The Auditor's Responsibilities relating to Fraud in an Audit of a Financial Report provides that the primary day-to-day responsibility for prevention of fraud rests with: A. the internal auditor. B. management C. the external auditor. D. the audit committee. Question 2 0.4 pts An example of a transaction that may be indicative of the existence of related parties is: A. borrowing or lending at a rate of interest that equals the current market rate. B. selling real estate at a price that is comparable to its appraised value. C. making large loans with specified terms as to when or how the funds will be repaid. D. exchanging property for similar property in a non-monetary transaction. Which of the following statements best describes the auditor's responsibility regarding the detection of fraud? A. The auditor must extend auditing procedures to actively search for fraud. B. The auditor is responsible for the failure to detect fraud only when an unmodified auditor's opinion is issued. C. The auditor is responsible for fraud when such failure results from non-performance of procedures described in the engagement letter. D. The auditor must plan the audit so as to have a reasonable expectation of discovering material fraud