In connection with the examination of financial statements,an auditor could be responsible for failure to detect a material fraud if
A)statistical sampling techniques were not used on the audit engagement.
B)the auditor planned the work in a hasty and ineffective manner.
C)accountants performing important parts of the work failed to discover a close relationship between the treasurer and the cashier.
D)the fraud was perpetrated by one client employee who circumvented the existing internal controls.

Question

Quizplus · Accepted Answer

An auditor could be responsible for failing to detect a material fraud if the audit work was planned in a hasty and ineffective manner, as this could lead to inadequate procedures and oversight, increasing the risk of missing significant fraud.

In Connection with the Examination of Financial Statements,an Auditor Could