Which of the following is the true?

In case of aggregating likely misstatements, If the misstatement amounts is extracted by range, SAS Interpretation states that median value of the range which an auditor estimated is accepted.

Tests of the operating effectiveness of controls, analytical procedures, and risk assessment procedures are always necessary in a financial statement audit.

Large amounts of liquid assets that are easily convertible into cash : is factor that would heighten an auditor's concern about the risk of fraudulent financial reporting.

An overly complex organizational structure involving unusual lines of authority : is factor that would heighten an auditor's concern about the risk of misappropriation.

A. False False False True

B. True False False False

C. False False False False

D. False True False False

8. Which of the following is not true?

A. The audit should be designed to detect material errors and fraud, regardless of the cause.

B. The auditor should design the audit to provide reasonable assurance of detecting material errors and fraud.

C. An auditor should design the audit to provide reasonable assurance of detecting errors and fraud that are material to the financial statements.

D. An auditor should plan the audit to detect errors and fraud that are caused by departures from GAAP