Which one of the statements about fraud is not true

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Problem 1: Which one of the following statements about fraud is NOT true?

Option 1: The responsibility for preventing fraud rests with those charged with governance.

Option 2: Fraud is an intentional act involving deception and results in misstatement of the financial statements that are being audited.

Option 3: Auditors should adopt an attitude of professional skepticism to ensure any indicator of a potential fraud is properly investigated.

Option 4: Auditors are responsible for preventing and detecting fraud.

Problem 2: Which one of the following steps does NOT form part of the risk assessmnet phase of the audit?

Option 1: Understanding the client

Option 2: Risk identification and strategy

Option 3: Risk and materiality assessment

Option 4: Tests of control

Reference no: EM132944895

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