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

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

In order to form that opinion, the auditor shall conclude as to whether the auditor has obtained reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error.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.

Which of the following statements is incorrect with respect to misrepresentation?Group of answer choicesIt can be fraudulent, innocent or negligentEvery statement made by parties during pre‐contractual negotiations always become terms of the contractA misrepresentation is an untrue statement of fact that induces a party to enter into a contractIt is important to distinguish representations from terms and puff (exaggeration)

Which statement is incorrect regarding analytical procedures?Select one:a.When comparison of those expectations with recorded amounts or ratios developed from recorded amounts yields unusual or unexpected relationships, the auditor considers those results in identifying risks of material misstatement.b.Analytical procedures may be helpful in identifying the existence of unusual transactions or events, and amounts, ratios, and trends that might indicate matters that have financial statement and audit implications.c.When such analytical procedures use data aggregated at a high level (which is often the situation), the results of those analytical procedures provide a clear-cut indication about whether a material misstatement may exist.d.In performing analytical procedures as risk assessment procedures, the auditor develops expectations about plausible relationships that are reasonably expected to exist.