The auditor's responsibility for fraud:
A) ends as of the balance sheet date.
B) ends as of the date of the audit report.
C) ends as of the withdrawal from the client.
D) essentially never ends.

Question

Quizplus · Accepted Answer

The auditor's responsibility for fraud essentially never ends. Although the auditor's primary responsibility is to detect and report material misstatements in the financial statements, including those resulting from fraud, they are also responsible for maintaining professional skepticism and being alert for any signs of fraudulent activity throughout the audit process. If the auditor becomes aware of fraud or potential fraud, they are required to take appropriate actions which may include reporting the matter to higher authorities or withdrawing from the engagement. However, even after the audit is completed, the auditor should maintain a level of professional skepticism and be alert for any additional information that may come to light indicating the presence of fraud.

The Auditor's Responsibility for Fraud