Which of the following factors is most important concerning an auditor's responsibility to detect errors and fraud?

Question

Quizplus · Accepted Answer

Choice "D" is correct. The most important factor concerning an auditor's responsibility to detect errors and fraud is the risk that mistakes, falsifications, and omissions may cause the financial statements to contain material misstatements. Choice "A" is incorrect. The susceptibility of the accounting records to intentional manipulations, alterations, and the misapplication of accounting principles is something the auditor must consider, but it does not describe the auditor's responsibility to detect errors and fraud. Choice "B" is incorrect. The probability that unreasonable accounting estimates result from unintentional bias or intentional attempts to misstate the financial statements is something the auditor must consider, but it does not describe the auditor's responsibility to detect errors and fraud. Choice "C" is incorrect. The possibility that management fraud, defalcations, and the misappropriation of assets may indicate the existence of illegal acts is something the auditor must consider, but it does not describe the auditor's responsibility to detect errors and fraud.

Which of the Following Factors Is Most Important Concerning an Auditor's