All misstatements the auditor finds during the audit should be evaluated for any indication of fraud.

Question

Quizplus · Accepted Answer

The auditor should evaluate all misstatements for any indication of fraud. This is required by auditing standards, as fraud can have a material impact on the financial statements and can involve intentional misstatements or omissions of information. It is the responsibility of the auditor to identify and appropriately respond to fraud risks during the audit.

All Misstatements the Auditor Finds During the Audit Should Be