What does SAS 99 (AU-C 240) primarily address?

A Inventory counts

B The auditors responsibility to consider fraud in a financial statement audit

C Tax preparation

D Internal control design

✓ Correct Answer: Option B

SAS 99 sets auditor responsibilities for detecting and reporting material misstatements due to fraud.

💡 Why is B) the correct answer?

The correct answer to the question "What does SAS 99 (AU-C 240) primarily address?" is Option B: The auditors responsibility to consider fraud in a financial statement audit.

The other options — A) Inventory counts, C) Tax preparation, D) Internal control design — are incorrect for this CPA Exam Prep question. As explained above: SAS 99 sets auditor responsibilities for detecting and reporting material misstatements due to fraud.

📚 About This CPA Exam Prep Practice Question

This 2-level CPA Exam Prep question from the Auditing & Attestation (AUD) topic is part of BrainForge Quiz's free exam preparation library. Each question includes the correct answer and a detailed explanation to help you understand the underlying concept, not just memorize the answer.

How to use this page: Read the question above, consider all four options (A through D), then check the highlighted correct answer and explanation. For active timed practice, start a free CPA Exam Prep practice test or use flashcards for spaced repetition review.

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What does SAS 99 (AU-C 240) primarily address?

✓ Correct Answer: Option B

📚 About This CPA Exam Prep Practice Question

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