According to the CPA Handbook, the Auditor's Responsibility for Failure

According to the CPA Handbook, the auditor's responsibility for failure to detect fraud arises

A) when such failure clearly results from failure to comply with generally accepted auditing standards.
B) whenever the amounts involved are material.
C) only when the examination was specifically designed to detect fraud.
D) only when such failure clearly results from negligence so gross as to sustain an inference of fraud on the part of the auditor.