First Class Auditor Responsibility For The Detection Of Errors And Frauds

Its the management responsibility.

Auditor responsibility for the detection of errors and frauds. Some specialists argued that the role of the. Auditors responsibility to detect material fraud. The primary responsibility for the prevention and detection of fraud rests with both those charged.

The detection of errors is basically what helps in the detection of fraud. A study of auditors responsibility for fraud detection in Malaysia maintain the auditors duties within reasonable limits. The auditors duties for the prevention detectionand reporting of fraud other illegal acts and errors is one of the most controversial issues inauditing.

In order to achieve this auditors must maintain an attitude of professional scepticism. The auditors responsibility for detecting fraud but the new amended standard provides guidance on how the auditor should plan and perform the audit to identify the risks of material misstatement resulting from errors or fraud Albrecht et al 2009. Therefore the external auditor has some responsibility for considering the risk of material misstatement due to fraud.

AUDITORS RESPONSIBILITY FOR DETECTION OF FRAUD The objective of this work is to describe the various types of fraud that the auditor may encounter and provide examples of actual fraud and to describe the auditors responsibility under GAAS. A1-A6 Responsibility for the Prevention and Detection of Fraud 4. Their assertion is based on ISA 315.

Following factors decide whether an Auditor is responsible for non-detection of errors and frauds An Auditor should audit as per the principles laid out for auditing. Suspect or in rare cases identify the occurrence of fraud the auditor does not make legal determinations of whether fraud has actually occurred. Auditor responsibility is just to provide independant opinion over the true and fair view of financial statements.

But during Audit if auditor detect any fraud or error it. The external auditor is responsible for obtaining reasonable assurance that the financial statements taken as a whole are free from material misstatement whether caused by fraud or error. Auditors in fraud detection During the audit the auditors detect different errors that may be manipulated before or may appear due to the carelessness of the companys bookkeepers.