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    Question

    According to SA 240, which of the following is TRUE

    regarding auditor’s responsibility in detecting fraud?
    A Auditor is responsible to prevent fraud Correct Answer Incorrect Answer
    B Auditor’s primary responsibility is to detect all frauds Correct Answer Incorrect Answer
    C Auditor should obtain reasonable assurance that FS are free from material misstatements due to fraud/error Correct Answer Incorrect Answer
    D Auditor must guarantee accuracy of accounts Correct Answer Incorrect Answer
    E Auditor must investigate every suspicion of fraud independently Correct Answer Incorrect Answer

    Solution

    Auditors are not responsible to prevent fraud; their role is to obtain reasonable assurance of true and fair financial statements.

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