The auditor’s responsibility for detecting fraud is to

The auditor’s responsibility for detecting fraud is to

The auditor’s responsibility for detecting fraud is to:

A. Guarantee no fraud exists.

B. Design audit procedures to detect material misstatements caused by fraud.

C. Detect all fraud, immaterial and material.

D. Report all suspected fraud directly to shareholders.

Answer: B

Explanation: Auditor is required to obtain reasonable assurance of detecting material misstatements from fraud or error.