One means of informing the client that the auditor is NOT responsible for the discovery of all acts of fraud is the:
A) representation letter.
B) responsibility letter.
C) client letter.
D) engagement letter.

Question

Quizplus · Accepted Answer

The engagement letter is the most appropriate means of informing the client that the auditor is not responsible for the discovery of all acts of fraud. The engagement letter outlines the scope of the audit and the responsibilities of both the auditor and the client. It also includes a disclaimer stating that the auditor's responsibility is to obtain reasonable assurance that the financial statements are free from material misstatement, but not to detect fraud.

One Means of Informing the Client That the Auditor Is