Which is not true of the following statements?Group of answer choicesDiscovery of fraudulent transactions depends on the preparation and skill of the auditorsThe risk of the auditor not detecting a material misstatement resulting from management fraud is greater than for employee fraud,The discovery of a material misstatement of the financial statements resulting from fraud does not, in itself, indicate a failure tocomply with PSAsThe risk of not detecting a material misstatement resulting from fraud is higher than the risk of not detecting a material misstatementresulting from error

Which is not true of the following statements?Group of answer choicesFraud is deliberate, errors are not.Some computer systems maintain no source documents.While the auditors may be able to identify potential opportunities for fraud to be perpetrated, it is difficult for the auditor to determine whether misstatement in judgment areas such as accounting estimates are caused by fraud or error.A deliberate failure to record transactions is not fraud

A properly planned and performed audit may fail to detect a material misstatement resulting from fraud because: A. an audit is planned and performed to provide reasonable assurance of detecting material misstatements caused by errors but not by fraud B. the auditor did not consider factors influencing audit risk for account balances that have effects pervasive to the financial report taken as a whole. C. the factors considered in assessing control risk indicated an increased risk of error but only a low risk of fraud in the financial report. D. audit procedures that are effective for detecting an error may be ineffective for fraud that is concealed through collusion

Risks of material misstatement at the financial statement level refer to risks that relate to the inherent limitation of audit of financial statements.Select one:TrueFalse

The auditor shall consider whether information obtained from the auditor's client acceptance or continuance process is not relevant to identifying risks of material misstatement.Select one:TrueFalse

Which statement is incorrect regarding the discussion among the engagement team about the susceptibility of the entity's financial statements to material misstatements?Select one:a.The objective of this discussion is for members of the engagement team to gain a better understanding of the potential for material misstatements of the financial statements resulting from fraud or error in the specific areas assigned to them, and to understand how the results of the audit procedures that they perform may affect other aspects of the audit.b.The discussion provides an opportunity for more experienced engagement team members, including the engagement partner, to share their insights based on their knowledge of the entity, and for the team members to exchange information about the business risks.c.The members of the engagement team should discuss the susceptibility of the entity's financial statements to material misstatements.d.All the team members should have a comprehensive knowledge of all aspects of the audit.