ISA 240 the Auditor’s responsibilities relating to Fraud in an audit of financial statements, describes the responsibilities of both management and the auditor with regard to preventing and detecting fraud. 1. Distinguish between fraud and error. 2. With an example each, distinguish between fraudulent financial reporting and misappropriation of assets. 3. Explain the responsibilities of both management and auditors with regard to the prevention and detection of fraud.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
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Chapter1: Financial Statements And Business Decisions
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ISA 240 the Auditor’s responsibilities relating to Fraud in an audit of financial statements, describes the responsibilities of both management and the auditor with regard to preventing and detecting fraud.

1. Distinguish between fraud and error.

2. With an example each, distinguish between fraudulent financial reporting and misappropriation of assets.

3. Explain the responsibilities of both management and auditors with regard to the prevention and detection of fraud.

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