The auditor is expected to
A)modify the audit opinion when fraud occurs
B)gather evidence to prevent two types of fraud (fraudulent financial reporting and misappropriation of assets)to determine that the financial statements are free of material misstatements
C)gather evidence to evaluate two types of fraud (fraudulent financial reporting and misappropriation of assets)to determine that the financial statements are free of material misstatements
D)report all fraud in the audit report

Question

Quizplus · Accepted Answer

Auditors are responsible for gathering evidence to evaluate the risk of material misstatement in the financial statements due to fraud, including both fraudulent financial reporting and misappropriation of assets, to ensure the financial statements are free of material misstatements.

The Auditor Is Expected to