Question

Errors are usually more difficult for an auditor to detect than frauds.
A) True
B) False

Answer 1

Errors are usually easier for an auditor to detect than frauds.

Step-by-step explanation:

False

Errors are usually easier for an auditor to detect than frauds. While both errors and frauds can result in misstatements in financial statements, errors are unintentional mistakes, whereas frauds involve intentional misrepresentation or deception.

Auditors follow a systematic process of risk assessment, internal control evaluation, testing and verification to detect errors and frauds. They use various techniques such as substantive testing, analytical procedures, and document examination to uncover errors and indications of fraud.