An audit should be designed to obtain reasonable assurance of detecting material misstatements due to:
A)Errors.
B)Errors and fraud.
C)Errors, fraud, and noncompliance with laws with a direct effect on financial statement amounts.
D)Errors, fraud and noncompliance with all laws.

Question

Quizplus · Accepted Answer

An audit should be designed to obtain reasonable assurance of detecting material misstatements due to errors, fraud, and noncompliance with laws with a direct effect on financial statement amounts. This means that the auditor should focus on identifying material misstatements that are due to errors or fraud, as well as any noncompliance with laws or regulations that has a direct impact on the financial statements. Noncompliance with all laws is not necessary to be the focus of the audit.

An Audit Should Be Designed to Obtain Reasonable Assurance of Detecting