Auditing · Auditor Responsibilities Regarding Fraud
Which of the following statements correctly describes the auditor's responsibility regarding the detection of fraud in financial statements?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The auditor has no responsibility regarding fraud because it rests solely with management
- 2The auditor must detect every instance of fraud, whether material or immaterial
- 3The auditor must guarantee detection of all material fraud in financial statements
- 4The auditor may not detect all material fraud due to concealment techniques, but this does not automatically imply auditor negligence✓
Correct answer
The auditor may not detect all material fraud due to concealment techniques, but this does not automatically imply auditor negligence
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