The risk of not detecting a misstatement resulting from fraud is greater than that resulting from error because Group of answer choices It is the responsibility of the management to detect fraud and the auditor’s responsibility is confined only to the detection of material errors The auditor designs procedures that only detect material misstatements from error Fraud involves acts designed to conceal it, such as collusion, forgery, or deliberate failure to record transactions. The professional standards do not require the auditor to discover information that is indicative of fraud

Q: Please show the different debits and credits to an investment account under the equity method of…

A: Equity method: Equity method is the method used for accounting equity investments which claim a…

Q: When the client’s internal control are good, internal documents are more reliable than external True…

A: The question is related to true or false on Auditing.

Q: whether there is a reasonable possibility that the company's internal control system will fail to…

A: Internal control is the managements’ effective and efficient controls for achieving goals and…

Q: When comparing the auditor's responsibility for detecting employee fraud and for detecting errors,…

A: Employee errors means mistakes happened in preparation of financial statements by the employee and…

Q: Based on "The Solitary Auditor" book: Identify specific errors in judgment made by Cason Kellis…

A: "The Solitary Auditor" is a book by R. D. Klassen that follows the story of Cason Kellis, a solo…

Q: n auditor does not need to test the effectiveness of automated controls in a computerized system.…

A: Auditors are responsible are maintaining the account and checking accounts and checking accuracy of…

Q: Define and explain the differences among several kinds of employee frauds that might occur at an…

A: Fraud - Fraud is an intentional act done by an employee involving the use of forgery of instrument,…

Q: Incompatible duties exist when an employee is in a position tlo penetrate and conceal errors of…

A: Fraud means intentional concealment of facts or wrongful action resulting in financial or personal…

Q: Why is it important for auditors to consider the possibility of fraud by employees or management on…

A: There is a possibility of the occurrence of fraud by the employees or management of the company.…

Q: i need the answer quickly

A: Analyzing the optionsa) Confirm more accounts receivable than earlier planned: This option would not…

Q: Which of the following is an inherent limitation of any client's internal control? Multiple Choice •…

A: The inherent limitation of any client's internal control is the possibility of human error,…

Q: Auditors must consider the possibility of fraud by employees or management on every audit…

A: Fraud: When someone intentionally uses false or misleading information in an effort to fraudulently…

Q: The FBI employs deception to collect information during its investigations. Do you believe it is…

A: In the context of auditing, deception refers to the use of false or misleading information or…

Q: Auditors have two strategies to choose from, the lower-assessed control risk strategy and the…

A: Incorrect (c)Auditors can always choose to use the predominantly substantive strategy regardless of…

Q: 1. What is the primary reason that auditors’ assess internal control? a)To determine the risk of…

A: Internal Control:It is a process that is being  effected by an entity's board of directors,…

Q: Which of the following is least likely to be a factor that might indicate to an auditor that an…

A: special considerations are used by auditors where there is a high risk of material misstatements in…

Q: Detection risk is the risk that O a client's system of internal controls will not prevent or detect…

A: Auditing means the independent checking of company operation by outsider. Auditor is  qualified and…

Q: Segregation of duties is one of the most important control activities to minimize incompatible…

A: Segregation of duty is a control mechanism that is implemented and used in order to reduce the risk…

Q: Risk of incorrect acceptance is defined as _______.     the risk that the auditor concludes that a…

A: Risk of incorrect acceptance may be defined as situation where audit sample supports a conclusion…

Q: Auditors are responsible to detect all frauds. True False

A: The answer for above question is given below:

Q: An independent auditor’s report is a guarantee that the financial statements are free from fraud or…

A: Auditor primary objectives is to give opinion on the financial statements and to give true and fair…

Q: As an auditor, you run across some abnormalities in a company’s books. What you find, makes you a…

A: An Auditor’s report is a letter by auditor in which information containing that company’s financial…

Q: Select the correct answer(s) for the following multiple choice questions. Note that there may be…

A: SAS No.99: SAS No.99 stands for Statement on Auditing Standards No.99: Consideration of Fraud. It is…

Q: . Identify from the following the situation/s where auditors are removed by the client. a. All the…

A: Solution: Following are the situations where auditors are removed by the client: 1. Involve in fraud…

Q: which of the following regarding errors is correct Select one: a. it is easier for the auditor to…

A: Ans. Errors can be of two types - i. Intentional error ii. Unintentional error Intentional errors…

Q: a) Explain why auditors’ reports are important to users of financial statements and why it   is…

A: Auditing means an examination of the financial statements of the company and ensuring that…

Q: Which of the following is an incorrect statement?       a. The amount of audit work should vary…

A: The person that analyzes the books of the company is known as the auditor. The auditor checks all…

Q: What is the ethical value of applying the Fraud Triangle to assess the risk of material…

A: Fraud Triangle:   A fraud triangle refers to a framework that is used in auditing to explain the…

Q: How do the professional audit standards differ for (a) errors, (b) frauds, (c) direct-effect…

A: Errors:   Error refers to omission of amounts or misstatement or disclosure in financial statement.…

Q: What were the motivating factors that led to the fraud at Nortel? How should the auditors have…

A: Introduction:- The Nortel fraud scandal was one of the largest in Canadian corporate history,…

Q: The auditor faces a risk that the examination will not detect material misstatements in the…

A: Introduction: An auditor verifies the accuracy of videoed commercial transactions. Auditors must…

Q: An auditor discovered the following matters while performing tests of controls: 1.An obligation for…

A: Internal Controls: The process designed, implemented, and maintained by those charged with…

Q: Please explain how you arrived at the correct answer. Thank you. 1. Auditors must consider fraud in…

A: Auditing means the independent checking of company operation by outsider. Auditor is  qualified and…

Q: The following questions concern the auditor’s responses to thepossibility of fraud.a. When fraud…

A: Auditor's responses should focus on how the groups will obtain will acquire proof to lessen the…