What does a signed audit report mean with respect to the ‘possibility’ of fraud within a company?

(a) There is a reasonable expectation that material irregularities due to fraud have been detected.

(b) It is unlikely that immaterial irregularities have been detected; however, all material irregularities should have been detected.

(c) An audit is not designed to detect fraud; therefore, an audit report gives no assurance as to whether fraud did or did not occur during the year.

(d) All fraud should have been detected.

Choose the best answer.