A properly planned and performed audit may fail to detect a material misstatement resulting from fraud because:
A. audit procedures that are otherwise effective may be ineffective for fraud that is concealed through collusion.
B. an audit is planned and performed to provide reasonable assurance of detecting material misstatements caused by errors but not by fraud.
C. the auditor did not consider factors influencing audit risk for account balances that have effects pervasive to the financial statements taken as a whole.
D. the factors considered in assessing control risk indicated an increased risk of error but only a low risk of fraud in the financial statements.
Answer: A
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