Question

O C. No. Fraud is a broad legal concept that descibes any intertional decet eantod do noltl contain matemal aomnts whther due to fraud or ee Thus the itar is concemed with detecting haud hat leads to a material sutance about

Answer 1

Solution:

No. Fraud is a broad legal concept on intentional deceit meant to deprive another person or party of their property or rights. auditor doesn't take responsibility for detecting all types of fraud. auditor performs auditing procedures to obtain reasonable assurance that financials don't contain material misstatements, whether due to fraud or error. Thus the auditor is concerned only with detecting fraud that leads to material misstatement. The auditor is not responsible for detecting fraud that does not lead to a material misstatement.

Hence option C is correct.