Audits are expected to provide a higher degree of assurance for the detection of material frauds than is provided for an equally material error.

Question

Quizplus · Accepted Answer

Audits are designed to provide reasonable assurance that the financial statements as a whole are free from material misstatement, whether caused by fraud or error, but they do not guarantee the detection of material frauds more than material errors.

Audits Are Expected to Provide a Higher Degree of Assurance