Final answer:
If an auditor conducted an audit in accordance with auditing standards, they would likely detect unrecorded transactions, errors in postings of recorded transactions, counterfeit signatures on paid checks, and fraud involving collusion.
Step-by-step explanation:
If an auditor conducted an audit in accordance with auditing standards, they would likely detect A) unrecorded transactions, B) errors in postings of recorded transactions, C) counterfeit signatures on paid checks, and D) fraud involving collusion.
Unrecorded transactions refer to financial transactions that were not properly recorded in the accounting records, and the auditor would likely identify these through various audit procedures such as sampling and verification of supporting documentation.
Errors in postings of recorded transactions refer to mistakes made when posting transactions to the accounting system, and these errors can be identified by reconciling and verifying the accuracy of the recorded transactions.
Counterfeit signatures on paid checks can be detected through reviewing the checks and comparing the signatures to authorized signatories. If any counterfeit signatures are identified, it would raise concerns of potential fraud.
Fraud involving collusion refers to fraudulent activities where multiple individuals are involved in planning and executing the fraud. The auditor may detect this through analytical procedures, reviewing documents and transactions, and conducting interviews with key personnel.