Question：You are an audit manager and your audit senior has found evidence that the accounts assistant at an audit client has been misappropriating amounts of petty cash. The assistant carried out the misappropriation by entering fictitious totals on the petty cash summary which was submitted monthly to the financial controller for review. You propose to recommend an unmodified audit opinion.
　　Which of the following can be included in the management letter in respect of this evidence without amendment?
　　A. We cannot be held responsible if employees of the company are found to have committed other more serious frauds which may be material to the accounts.
　　B. We recommend that the company investigates thoroughly the circumstances which our audit testing revealed and that a review of petty cash procedures be carried out in order to reduce the likelihood of fraud.
　　C. It appears that arithmetical errors are being made in compiling the petty cash summary.
　　D. In the course of our audit testing work we discovered that the accounts assistant, Mr Bovey, has perpetrated a fraud on the company.
　　The correct answer is:We recommend that the company investigates thoroughly the circumstances which our audit testing revealed and that a review of petty cash procedures be carried out in order to reduce the likelihood of fraud.
　　"In the course of our audit testing work we discovered that the accounts assistant, Mr Bovey, has perpetrated a fraud on the company" would require amendment because it states that Mr Bovey has committed a fraud before this has been proven.
　　"It appears that arithmetical errors are being made in compiling the petty cash summary" is factually inaccurate: the errors appear to have been deliberate, and were not merely arithmetical errors.
　　"We cannot be held responsible if employees of the company are found to have committed other more serious frauds which may be material to the accounts" is inappropriate: the auditor's general responsibility for the detection of fraud should be included in a general section elsewhere in the letter.