Auditors' responsibility relating to fraud risk is
A)detecting any type of fraud that occurred during the reporting period.
B)detecting fraud only if it is above the planning materiality level.
C)not an issue because the auditor is not responsible for detecting fraud.
D)making inquiries of management about fraud and considering fraud risks.

Question

Quizplus · Accepted Answer

The auditors' responsibility relating to fraud risk is to make inquiries of management about fraud and to consider fraud risks. While auditors do not have the responsibility to detect all instances of fraud, they are required to assess the risk of material misstatement due to fraud and to design their audits to obtain reasonable assurance of detecting material misstatements resulting from fraud. Therefore, option D is the most appropriate choice.

Auditors' Responsibility Relating to Fraud Risk Is