Question：The auditor of Woodferns Agencies, a limited liability company, is facing a legal claim for negligence. It is alleged that a fraud was perpetrated at one of the company's 80 branches, and the auditor had failed to visit that branch during his audit, since he had adopted a rotational testing approach. As a consequence the fraud had gone undetected for two years.
The auditor's best defence is likely to be to produce:
A. Case law judgements such as that in the Kingston Cotton Mill case which indicate that an auditor should not be held responsible for ingeniously laid frauds.
B. An up-to-date letter of engagement which pointed out to the directors that the audit should not be relied on to detect all frauds which may exist.
C. A written representation or other documentary evidence from the directors in which they acknowledge primary responsibility for the prevention and detection of fraud.
D. Working papers showing the audit work performed supporting the view that internal control had been good and that all branches were visited over a relatively short period.
The correct answer is:Working papers showing the audit work performed supporting the view that internal control had been good and that all branches were visited over a relatively short period.
解析：In order to gain comfort over the company's records, enough branches have to be visited to enable the auditor to form an audit opinion. Therefore to defend himself against a claim of negligence, he could prove that his visits to branches cover all of them over a short period. Other options merely point out that the auditor is not responsible for detecting frauds, and therefore are not the best defence.
高顿网校温馨提醒
各位考生，2016年ACCA备考已经开始，为了方便各位学员能更加系统地掌握考试大纲的重点知识，帮助大家充分备考，体验实战，高顿网校开通了全免费的
ACCA题库（包括精题真题和全真模考系统），题库里附有详细的答案解析，学员可以通过多种题型加强练习。
戳这里进入ACCA免费题库>>>
微信扫一扫，关注ACCA*7资讯，满满的干货喂饱你！ACCA微信公众号：gaodunacca
ACCA分享与交流QQ群：227573128
写评论
