Which of the following statements is usually true?
A) It is easier for the auditor to uncover fraud than errors.
B) It is easier for the auditor to uncover indirect-effect illegal acts than fraud.
C) The auditor's responsibility for detecting direct-effect illegal acts is similar to the responsibility to detect fraud.
D) The auditor's responsibility for detecting indirect-effect illegal acts is similar to the responsibility to detect fraud.

Question

Quizplus · Accepted Answer

The responsibility of the auditor to detect direct-effect illegal acts is similar to the responsibility to detect fraud as both involve intentional misrepresentations or omissions of information. Uncovering errors is usually easier than uncovering fraud. Indirect-effect illegal acts are those that do not have a direct impact on the financial statements, and detecting them is not a primary responsibility of the auditor.

Which of the Following Statements Is Usually True