Muliple Choice Questions Fran And Eror 5 “Mates misstatements may emanate fom ll ofthe following except fraud ‘noncomplisace with vs and relations Inadesusey of accounting record the level of assurance provided by an aude of deecting 2 muri imistatement i teftred to as + a ‘An intention act by one oF more individuals among mang ‘Reasonable assurance ‘Moderate assurance Absolute assurance [Negative asrance a femployecs, or thi parties which resoks in mistepresentation of Financial statements refers 10 b. a Passa legal acts E Noncomplisnce ae the context of financial statement presentation, fraud occurs when! ‘misstatement fs made and Us knowledge of its sty Muinotcment it made and theres koowedge fis sy bu Shear false comply wth PSA fe sade won o€ error, fit ‘The reeponsibiliry forthe detection and prevent and noncompliance with hus and regulations resis with lien’ egal 4 4 ‘The responsibilty for adopting sound accounsing policies adequate intemal conta, and making fir financial statemene rests 3. With the management 1, With the independest auctor, 2) Esqually wich management andthe auditor 4) With the inerat anit departmene The management responsiblity to detect and prevent fraud and estor is accomplished by Implementing adequate quality control system Having an annual aud of financial statements menting adequate accountings inet sentation lett to the audioe, nal contol system. Which of the following statements best describes the auditor's responsibility regarding the detection of matesal ests aad frauds? 8. The auditor is responsibe fr che faluce to dete such fl results from the misapplieaGon ‘The sce should be designed to provide reasoeable assurance that material errors and Fads wil be deteexed ©The auditor is esponsibe for the flare to detect material eros and friud only when the auditor fasta conti receivables or observe inventories Extended audi in procedures are requir to deteee wnecorded actions even if there fs no evidence that mate enors and finds may exis he author's bew defense he 1. the avait was conducted in ace senting principles, material nissntements rdance with generally accepted L. Ghentis ja rut b clentisgudty of eontinatory netigcnc: "wsandit was conducted in secealance wt PSA Lhe fi s