The auditor comes through several matters during the audit process which are required to be informed to the management of the client. However, the auditor needs to choose the appropriate level of the management to communicate the matters. Some matters may be too crucial that those cannot be communicated to the management, due to management involvement or fraud. In such cases the auditor should communicate the matter to those charged with governance. The auditor is responsible to communicate relevant matters to those charged with governance people on timely basis. To choose: The case when auditor is responsible to disclose fraud to parties other than entity’s senior management and its auditor committee.

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Chapter 4, Problem 4.21MCQ

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The auditor comes through several matters during the audit process which are required to be informed to the management of the client. However, the auditor needs to choose the appropriate level of the management to communicate the matters. Some matters may be too crucial that those cannot be communicated to the management, due to management involvement or fraud. In such cases the auditor should communicate the matter to those charged with governance. The auditor is responsible to communicate relevant matters to those charged with governance people on timely basis.

To choose: The case when auditor is responsible to disclose fraud to parties other than entity’s senior management and its auditor committee.

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Which of the following statements is correct with regards to the auditor's responsibility concerning fraud? a.Fraud detection is the objective of an audit. b.It is the auditor's responsibility to prevent fraud. c.The auditor is responsible for obtaining reasonable assurance that the financial statements are free from material statement, whether caused by fraud or error. d.When fraud is discovered by the auditor they must withdraw from the engagement.

whom should the auditors contact when they suspect a fraud? a. senior management b. audit committee of the board o directors c. expected perpetrators of the fraud d. either the senior management or the audit committee

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