Audits of Financial Statements Are Valuable to the Detection of Fraud

Multiple Choice

Audits of financial statements are valuable to the detection of fraud because:

A) Auditors are not required to seek out and find all fraud.
B) Auditors expect that management will make them aware of any fraud in the financial statements.
C) Society expects that the auditor will ensure that financial statements have not been materially misstated due to fraud.
D) Society realizes that some fraud is not capable of being discovered by auditors.