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

A. Audit procedures that are effective for detecting an error 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 error but not fraud.

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

D. The audit did not consider factors influencing audit risk for account balances that have a pervasive effect on the financial report taken as a whole.