Which of the following is a true statement about an auditor’s responsibility regarding consideration of fraud in a financial statement audit? A. The auditor should consider the client’s internal control and plan and perform the audit to provide absolute assurance of detecting all material mis-statements.
B. The auditor should assess the risk that errors may cause the financial statements to contain any mis-statements and determine whether the necessary controls are prescribed and are being followed satisfactorily.
C. The auditor should consider the types of mis-statements that could occur and perform tests on 100% of the information subject to misstatement.
D. The auditor should assess the risks of material mis-statement due to fraud.