A properly planned and performed audit may fail to detect a material misstatement resulting from fraud because:

Multiple Choice

the auditor did not consider factors influencing audit risk for account balances that have effects pervasive to the financial

statements taken as a whole.

the factors considered in assessing control risk indicated an increased risk of error but only a low risk of fraud in the financial

statements.

an audit is planned and performed to provide reasonable assurance of detecting material misstatements caused by errors but

not by fraud.

audit procedures that are otherwise effective may be ineffective for fraud that is concealed through collusion.