An audit should be designed to obtain reasonable assurance of detecting material misstatements due to:
A)Errors.
B)Errors and fraud.
C)Errors,fraud,and noncompliance with laws with a direct effect on financial statement amounts and others.
D)Errors,fraud and noncompliance with all laws.

Question

Quizplus · Accepted Answer

An audit should be designed to obtain reasonable assurance of detecting material misstatements due to errors, fraud, and noncompliance with laws with a direct effect on financial statement amounts and others. Noncompliance with all laws may not necessarily have a material effect on the financial statements, so it is not necessary to include it in the audit objectives.

An Audit Should Be Designed to Obtain Reasonable Assurance of Detecting