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The Responsibility For The Detection and Prevention of Errors, Fraud and Noncompliance With Laws and Regulations Rests With A. Auditor

The three key responsibilities outlined in the document are: 1. An audit provides reasonable assurance of detecting material misstatements, not absolute or negative assurance. 2. Client management is responsible for preventing and detecting errors, fraud, and noncompliance with laws and regulations, not the auditor or internal auditor. 3. Client management is responsible for adopting sound accounting policies, maintaining adequate internal controls, and fair financial statement representation, not the auditor or internal audit department.

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2K views2 pages

The Responsibility For The Detection and Prevention of Errors, Fraud and Noncompliance With Laws and Regulations Rests With A. Auditor

The three key responsibilities outlined in the document are: 1. An audit provides reasonable assurance of detecting material misstatements, not absolute or negative assurance. 2. Client management is responsible for preventing and detecting errors, fraud, and noncompliance with laws and regulations, not the auditor or internal auditor. 3. Client management is responsible for adopting sound accounting policies, maintaining adequate internal controls, and fair financial statement representation, not the auditor or internal audit department.

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accounts 3 life
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© © All Rights Reserved
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4.

The level of assurance provided by an audit of detecting a material misstatement is


referred to as: a. Reasonable assurance. b. Moderate assurance. c. Absolute
assurance d. Negative assurance.
5.
The responsibility for the detection and prevention of errors, fraud and
noncompliance with laws and regulations rests with a. auditor
c. client management b. client's legal counsel d. internal auditor
6.
The responsibility for adopting sound accounting policies, maintaining adequate internal
control, and making fair representation in the financial statement rests a. With the
management. b. With the independent auditor. C. Equally with management and the
auditor. d. With the internal audit department.
10.
7.
a.

The management responsibility to detect and prevent fraud and error is accomplished
by
Implementing adequate quality control system. b.
Having an annual audit of financial statements. Implementing adequate accounting and
internal control
system. d. Issuing a representation letter to the auditor.
C.
8.
Which of the following statements best describes the auditor's responsibility
regarding the detection of material errors and frauds? a. The auditor is
responsible for the failure to detect material
errors an frauds only when such failure results from the misapplication of PSA. The
audit should be designed to provide reasonable assurance that material errors and
frauds will be detected.
86

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