ACCA BT · Chapter 8 · Question 3 of 11
Which of the following is a responsibility of the directors rather than of the external auditor?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Establishing internal controls to prevent and detect fraud
Explanation
Directors are responsible for preparing the financial statements and for establishing systems of internal control, including those to prevent and detect fraud. The auditor's responsibilities include forming and expressing an opinion, planning the audit to detect material misstatement and reporting significant deficiencies identified.
More Audit, internal control and fraud MCQs
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