You are an induction and training officer for Maher Public Accountants, a leading accounting firm based in Dublin, Ireland. You are due to give a training course to a group of newly recruited audit trainees in fraud and error. This is a particularly important course and audit trainees from previous cohorts have acknowledged the benefit of the course in their feedback. The current cohort of audit trainees are particularly interested in understanding their responsibilities and those of the directors in the area of fraud and error. Required: Prepare material for the audit trainees as part of the induction pack which covers the following: (a) Identify and distinguish the responsibilities of the auditor and the directors with regards to fraud. (b) Discuss the steps undertaken by auditors when they detect and suspect fraud. (c) Critically examine the limitations of audit procedures in detecting fraud and error
You are an induction and training officer for Maher Public Accountants, a leading
accounting firm based in Dublin, Ireland. You are due to give a training course to a
group of newly recruited audit trainees in fraud and error.
This is a particularly important course and audit trainees from previous cohorts have
acknowledged the benefit of the course in their feedback.
The current cohort of audit trainees are particularly interested in understanding their
responsibilities and those of the directors in the area of fraud and error.
Required:
Prepare material for the audit trainees as part of the induction pack which covers the
following:
(a) Identify and distinguish the responsibilities of the auditor and the directors with
regards to fraud.
(b) Discuss the steps undertaken by auditors when they detect and suspect fraud.
(c) Critically examine the limitations of
Audit is an official examination of financial information of an entity.
The person who conducts the audit, is auditor.
An auditor is responsible for obtaining the reasonable assurance that the financial information of an entity is free from material misstatement whether caused by fraud or error.
Material is, which has the ability to effect the decision of users, individually or in aggregate.
Error is an unintentional act.
Fraud is an intentional act.
Professional skepticism is the auditor's questioning mind and being alert to the situations.
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