Which of the following statements best describes auditors' responsibility to detect errors and frauds?
A)Auditors should design an audit to provide reasonable assurance of detecting errors and frauds that are material to the financial statements.
B)Auditors are responsible to detect material errors, but have no responsibility to detect material frauds that are concealed through employee collusion or management override of the internal control structure.
C)Auditors have no responsibility to detect errors and frauds unless analytical procedures or tests of transactions identify conditions causing a reasonably prudent auditor to suspect that the financial statements were materially misstated.
D)Auditors have no responsibility to detect errors and frauds because an auditor is not an insurer and an audit does not constitute a guarantee.

Question

Quizplus · Accepted Answer

Auditors are responsible for designing an audit that will provide reasonable assurance of detecting material erros and frauds. However, auditors are not responsible for detecting all errors and frauds, especially those that are well-concealed or not detected by normal audit procedures. Additionally, auditing does not provide a guarantee that all material errors or frauds will be detected.

Which of the Following Statements Best Describes Auditors' Responsibility to Detect