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 xxxxxxxx fraud xxxxxxx entails xxx or x few xxxxxx or xxxxxxx groups xxxxxx the xxxxxxx that xxx have xxx intention xx stealing xxxxxx or xxxxxx the xxxxxx for xxxxx own xxxxxxx Typical xxxxxxxxx compromise xx embezzlement xxxxxxxxxx time-sheets xxx unapproved xxxxxxxxxxxx However xxxxxxxxxx fraud xx typically xxxx complex xxx involves xxxxxx executives xxx falsify xxxxxxxxx statements xx use xxxxx illegal xxxxxxx in xx attempt xx manipulate xxxxxxxxx raise xxxxx prices xx hide xxxx performance xxxxxxxx fraud xxxxx has xx impact xx functional xxxxxxxxxxxxx while xxxxxxxxxx misconduct xxx have xxx reaching xxxxxxx including xxx potential xxx legal xxxxxxxx and x decline xx investor xxxxx Whittington xxx Pany 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 xxxxxxxxxxxxxxxxxxxxx O x Pany x Principles xx auditing xxx other xxxxxxxxx services xx ed xxxxxxxxxxx EducationMore Articles From Accounting
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