Which one of the following situations can constitute grounds-00142
Which one of the following situations can constitute grounds for a claim of negligence on part of the auditors to detect a fraud?
This multiple choice question (MCQ) is related to the book/course
vu acc311 Fundamentals of Auditing.
It can also be found in
vu acc311 Mid Term - Quiz No.2.
Which one of the following situations can constitute grounds for a claim of negligence on part of the auditors to detect a fraud?
The fraud was committed by a senior management override of internal controls which had been relied upon in reducing the extent of detailed testing
The auditor relied on sample evidence and thus failed to detect the fraudulent transactions
The auditor reported discrepancies to local management but did not investigate further as the likely impact on the accounts was not material
The auditor accepted local management representations as to discrepancies as the potential impact of the fraud was not material to the accounts as a whole
