Auditing standards do not require auditors of financial statements to
A) Understand the nature of errors and frauds.
B) Assess the risk of occurrence of errors and frauds.
C) Design audits to provide reasonable assurance of detecting errors and frauds.
D) Report all errors and frauds found to police authorities.

Question

Quizplus · Accepted Answer

Auditors are not required to report all errors or frauds found to police authorities. They have a responsibility to bring significant findings to the attention of management and, in some cases, those charged with governance. However, the decision to report to external authorities is often based on professional judgment, ethical considerations, and legal requirements.

Auditing Standards Do Not Require Auditors of Financial Statements to