Required information Chapter 04 Problem 4-31 LO 4-6, 4-9 [The following information applies to the questions displayed below.] Management fraud (e.g., fraudulent financial reporting) is a relatively rare event. However, when it does occur, the frauds (e.g., Enron and WorldCom) can have a significant effect on shareholders, employees, and other parties. The PCAOB's AS 2401, Consideration of Fraud in a Financial Statement Audit, provides the relevant guidance for auditors. Chapter 04 Problem 4-31 Part a LO 4-6, 4-9 a. Which of the following is true pertaining to the auditor's responsibility for detecting fraud? Multiple Choice An auditor is responsible for obtaining reasonable assurance that the financial statements as a whole are free from material misstatements, whether caused by error or fraud. An auditor bears no responsibilities as it pertains to fraud. An auditor is responsible for obtaining reasonable assurance that the financial statements are free of all fraud. statements are free from material misstatements due to errors