Which of the following statement is most accurate in describing an auditor's responsibility to detect errors and fraud?

Multiple Choice $$

The auditor should assess the risk that errors and fraud may cause the financial statements to contain material misstatements, and design the audit to obtain reasonable assurance of detecting material errors and fraud. $$

The auditor should assess the risk that errors and fraud may cause the financial statements to contain material misstatements, and determine whether the necessary controls are prescribed and are being followed.

The auditor should consider the types of errors and fraud that could occur, and determine whether the necessary controls are prescribed and are being followed.

The auditor should consider the client's internal control, and design the audit to provide reasonable assurance of detecting all errors and fraud.