Question.3633 - Discussion Topic: Auditors must consider the possibility of fraud by employees or management on every audit engagement. They must also consider the possibility that the client has not complied with laws. (a) Distinguish between employee and management fraud. (b) Describe the auditors' responsibility for the detection of fraud in an audit. (c) Describe the auditors' responsibility regarding noncompliance with laws by a client.
Answer Below:
Auditors xxxx sure xxxx financial xxxxxxxxxx are xxxxxxxx and xxxxxxxx Their xxxxxxxxxxxxxxxx go xxxxxx just xxxxxxxx figures xxxx also xxxx to xxxx into xxxxxxx the xxxxxxxxx for xxxxx and xxxxx violations xx staff xx management xxxx Employee xxxxx usually xxxxxxx one xx a xxx people xx certain xxxxxx within xxx company xxxx may xxxx the xxxxxxxxx of xxxxxxxx assets xx misuse xxx system xxx their xxx benefit xxxxxxx instances xxxxxxxxxx of xxxxxxxxxxxx falsifying xxxxxxxxxxx and xxxxxxxxxx transactions xxxxxxx management xxxxx is xxxxxxxxx more xxxxxxx and xxxxxxxx senior xxxxxxxxxx who xxxxxxx financial xxxxxxxxxx or xxx other xxxxxxx tactics xx an xxxxxxx to xxxxxxxxxx investors xxxxx stock xxxxxx or xxxx poor xxxxxxxxxxx Employee xxxxx often xxx an xxxxxx on xxxxxxxxxx effectiveness xxxxx managerial xxxxxxxxxx can xxxx far xxxxxxxx impacts xxxxxxxxx the xxxxxxxxx for xxxxx problems xxx a xxxxxxx in xxxxxxxx trust xxxxxxxxxxx and xxxx nbsp xx every xxxxx involvement xxxxxxxx must xxxxxxxx the xxxxxxxxxxx of x material xxxxxxxxxxxxxxxxx brought xx by xxxxx This xxxxxxxx analyzing xxx internal xxxxxxxx of xxx organization xx determine xxx potential xxxxx hotspots xxx creating xxxxx protocols xx spot xxxxxxxxxx and xxxxxxxx audit xxxxxxxxx to xxxx fraudulent xxxxxxxx It xx crucial xx remember xxxx auditors xxxxxx ensure xxxx every xxxxx will xx found xxxx schemes xxx be xxxxxxxxxxx or xxxxxxx the xxxxxxx of xxxxx work xxxxxxx significant xxxxxx that xxxxx compromise xxx accuracy xx the xxxxxxxxx accounts xx the xxxx goal xxxxxxxxxxx and xxxx Barring xxxxx auditors xxxx need xx keep xx mind xxxxx and xxxxxxxxxx violations xxxxxxxx they xxx not xxxxxxxx to xxxx every xxxxxxxxx of xxxxxxxxxxxxx auditors xxx in xxxxxx of xxxxxxxx significant xxxxxxxxx that xxx have xx influence xx financial xxxxxxxxxx This xxxxxxx assessing xxx legal xxx regulatory xxxxxxxxx of xxx business xxx talking xxxxx any xxxxxxxx risks xx problems xxxx administration xxx legal xxxxxxx When xxxxxxxxxxxxx is xxxxx auditors xxxx to xxxxxxx how xx influences xxx financial xxxxxxxxxx and xxxxxxx more xxxxxxxxxx or xx adjustment xx the xxxxx opinion xx required xxxx ReferencesWhittington x R xxx Pany x nbsp xxxxxxxxxx of xxxxxxxx and xxxxx assurance xxxxxxxx nbsp xx ed xxxxxxxxxxx Education xxxxMore Articles From Accounting
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