What are the responsibilities of the independent auditor for the detection of fraud involving misappropriation of assets and fraudulent financial reporting? Discuss fully, including your assessment of whether the auditor\'s responsibility for the detection of fraud is appropriate.
Solution
Auditor is a person who examines fianancial records and business transactions with which he/she is not affilated.
1.The auditor has no responsibility to plan and perform the audit to obtain reasonable assurance that misstatements, whether caused by errors or fraud, that are not material to the financial statements are detected.
In case if the auditor finds out any fraud then he may report this to managemnt office.
No Auditor\'s responsibility of detection of fraud is not appropriate because Auditor is not affilated with it and he has no authorities regarding this.
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What are the responsibilities of the independent auditor for the detec.docx
1. What are the responsibilities of the independent auditor for the detection of fraud involving
misappropriation of assets and fraudulent financial reporting? Discuss fully, including your
assessment of whether the auditor's responsibility for the detection of fraud is appropriate.
Solution
Auditor is a person who examines fianancial records and business transactions with which he/she
is not affilated.
1.The auditor has no responsibility to plan and perform the audit to obtain reasonable assurance
that misstatements, whether caused by errors or fraud, that are not material to the financial
statements are detected.
In case if the auditor finds out any fraud then he may report this to managemnt office.
No Auditor's responsibility of detection of fraud is not appropriate because Auditor is not
affilated with it and he has no authorities regarding this.
