Which of the following would not be a required confirmation of management responsibility when addressing fraud in the management representation letter?
A)
To disclose to the auditor any knowledge or suspicion of fraud involving management.
B)
To design, implement, and maintain a system of internal controls designed to prevent and detect fraud.
C)
To report any significant fraud to the appropriate authorities.
D)
To disclose to the auditor the results of management’s assessment of the risk that the financial statements may be materially misstated due to fraud.
Inherent risk:
A)
is directly affected by the acceptable level of audit risk
B)
may be lowered if the auditor raises the tolerable detection risk
C)
is the risk the financial statements might contain material misstatements or omissions
D)
is directly affected by the internal controls
The auditor’s primary responsibility is:
A)
to prepare the financial statements
B)
to attest to the fairness of the financial statements
C)
to issue the financial statements
D)
to attest to the correctness of the financial statements