External auditors are responsible:
A)for authenticating documents.
B)for reporting immaterial frauds to a level of management at least one level above the people involved.
C)for finding all intentional misstatements concealed by collusion.
D)for reporting all frauds to outside agencies or parties.

Question

Quizplus · Accepted Answer

External auditors are responsible for reporting immaterial frauds to a level of management at least one level above the people involved. They are not responsible for authenticating documents or finding all intentional misstatements concealed by collusion. Also, they are not necessarily required to report all frauds to outside agencies or parties, only those that meet certain criteria (such as being material and having a significant impact on financial statements).

External Auditors Are Responsible