Which of the Following Statements About Fraud Is True

Multiple Choice

Which of the following statements about fraud is true?

A) Unless auditors can provide assurance that the financial statements are free of material misstatements due to fraud,there is no justification for the audit function.
B) The AICPA has mandated that the auditor take on more responsibility than previously required because of management's demand for fraud detection.
C) It is the responsibility of the auditor to provide internal control over a client organization sufficient to discover or prevent fraud from occurring.
D) Auditor-initiated fraud is a large concern of shareholders and the audit committee must continually monitor the auditors to ensure they are not misstating financial statements.