What type of responsibility does the Treadway Commission assign to auditors in relation to fraud?

The Treadway Commission emphasizes that auditors not only have a responsibility to ensure the accuracy of financial reporting but also to take an active role in the prevention and detection of fraud. This proactive approach underlines the importance of auditors in the overall framework of corporate governance and risk management. By advocating for auditors to be engaged in preventing and detecting fraud, the Commission recognizes that a strong internal control system, combined with diligent auditing practices, can significantly reduce the likelihood of fraudulent activities.

Auditors are expected to perform their duties with a level of skepticism and a focus on identifying areas where fraud could occur. This involves implementing appropriate audit techniques and remaining vigilant throughout the auditing process. The belief is that by actively engaging in these areas, auditors can help create a culture of integrity and accountability within organizations, which ultimately contributes to a less favorable environment for fraud.

The other options do not align with the Treadway Commission's recommendations on the role of auditors. While reporting incidents post-occurrence is a part of an auditor's responsibility, it does not encompass the proactive stance the Commission advocates for. Focusing solely on financial reporting accuracy neglects the broader context in which auditors must operate, which includes considering potential fraud risks. Lastly, while auditor involvement in facilitating ethical training for management is