QUESTION 14 1. Which of the following statements reflects an auditor's responsibility for detecting fraud? A. An auditor is not responsible for discovering fraudulent acts involving employee collusion B. The audit should be planned to detect only fraud caused by departures from GAAP C.An auditor is only responsible for detecting fraudulent financial reporting D.An auditor should design the audit to provide reasonable assurance of detecting C C errors and fraud that are material to the financial statements. 2.5 points QUESTION 15 Which of the following is a specific corporate governance responsibility of Executive Management? C A Approving major changes, such as mergers C B. Approving non-audit work performed by the audit firm C C.Reviewing the budget of the internal audit function 1. D.Implementing an effective ethical environment 2.5 poists QUESTION 16 Who is most often involved in perpetrating fraudulent financial reporting? C C 1. A.The auditors and the attorneys B. The treasurer and the board of directors C. The chief executive and chief financial officers C D. The shareholders and the chief operating officer 2.5 points QUESTION 17 Which of the following is an example of fraud? O AA mistake in processing accounting data. C B. An incorrect accounting estimate arising from misinterpretation of facts. C C.Misappropriation of an asset C D.A mistake in the application of accounting principles 1. 2.5 points