Which of the following statements best describes an auditors current responsibility to detect financial reporting fraud?

a. The auditor should assess the risk that errors and fraud may cause the financial statements to contain material misstatements and determine whether internal control procedures are adequate to prevent the occurrence of fraud.

b. The auditor should consider the types of misstatements that could occur and determine whether the audit committee is effective in monitoring senior management.

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

d. The auditor is obligated to detect all material errors, but no material fraud, since management makes a statement of fact in the standard management representations letter that there is no such fraud.

Which assertion is addressed when the auditor takes a sample of shipping documents and agrees them to related sales invoices associated with the sales journal?

a. Existence/occurrence.

b. Completeness.

c. Rights and obligations.

d. Valuation or allocation.