Which of the following statements reflects an auditor's responsibility for detecting fraud and errors?
A. An auditor is responsible for detecting employee errors and simple fraud, but not for discovering fraudulent acts involving employee collusion or management override.
B. An auditor should plan the audit to detect errors and fraud that are caused by departures from the applicable financial reporting framework.
C. An auditor is not responsible for detecting fraud unless the application of GAAS would result in such detection
D. An auditor should design the audit to provide reasonable assurance of detecting fraud and errors that are material to the financial statements.
Ans: D. An auditor should design the audit to provide reasonable assurance of detecting fraud and errors that are material to the financial statements.
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Jacko Co is a U.S.-based MNC with net cash inflows of euros and net cash inflows of Sunland francs. These two currencies are highly negatively correlated in their movements against the dollar. Kriner Co is a U.S.-based MNC that has the same exposure as Jacko Co in these currencies, except that its Sunland francs represent cash outflows. Which firm has a high exposure to exchange rate risk? a
Jacko Co. b. Kriner Co. c. The firms have about the same level of exposure. d. Neither firm has any exposure.
The business department in Skandsoft Technologies, a computer software company, consists of technically trained, nonmarketing experts such as engineers or programmers. A salesperson continues to play the lead role in most sales situations while technical experts add value to the sales process. Which form of personal selling is being used by this organization?
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