Distinguish between fraudulent financial reporting and misappropriation of assets.
Auditors should plan and perform their audits to provide reasonable assurance of detecting material misstatements in financial statements, including those resulting from fraud
a.Distinguish between fraudulent financial reporting and misappropriation of assets.
b. Describe the three fundamental conditions necessary for the commission of fraud. Provide an illustration of these three conditions for a case of fraudulent financial reporting.
c. Describe the three ways in which the auditors may respond to fraud risks in an audit.
As per our guideline we provide solution to the one question but you have asked three different questions of auditing subject kindly resubmit the remaining two questions to get the solution.
There can be materials misstatements in the financial statements which will yield the inappropriate financial statements and those misstatements have to be unfolded by the auditor which is one of the duties of the auditor and responsibility as well.
Step by step
Solved in 2 steps
