CASEtoability ofcopy of 'A Practical Manual for Auditors' handbook that has been used by the frm snce1990. Mr Mika proudly claims that this is the main reference handbook for auditing. Youopen the handbook and read the following statement on page 15:inancialthe detection of fraud, all errors and unlawful acts committed by the audit client isthe responsibility of an auditor.nancialBased on your audit knowledge, this does not appear to be the current practice as stipulatedunder ISA 240 – The Auditor's Responsibilities Relating to Fraud in an Audit of FinancialStatements. You are aware that auditing is conducted in accordance with professionalstandards, and an auditor is responsible for obtaining reasonable assurance that thefinancial statements are free from material misstatements, whether caused by error orassessfraud.Write a memo to Mr Mika discussing the audit objectives and an auditor's responsibilitiesin detecting fraud as stipulated under ISA 240.

Answered: Write a memo to Mr Mika discussing the…

Write a memo to Mr Mika discussing the audit objectives and an auditor's responsibilities in detecting fraud as stipulated under ISA 240.

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter5: Professional Auditing Standards And The Audit Opinion Formulation Process

Section: Chapter Questions

Problem 8CYBK

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Concept explainers

Fraud

Fraud in accounting is the planned manipulation of financial documents to make a false appearance of corporate financial health. Moreover, it includes an employee, accountant, or the company itself misleading investors and shareholders.

Question

CASE
to
ability of
copy of 'A Practical Manual for Auditors' handbook that has been used by the frm snce
1990. Mr Mika proudly claims that this is the main reference handbook for auditing. You
open the handbook and read the following statement on page 15:
inancial
the detection of fraud, all errors and unlawful acts committed by the audit client is
the responsibility of an auditor.
nancial
Based on your audit knowledge, this does not appear to be the current practice as stipulated
under ISA 240 – The Auditor's Responsibilities Relating to Fraud in an Audit of Financial
Statements. You are aware that auditing is conducted in accordance with professional
standards, and an auditor is responsible for obtaining reasonable assurance that the
financial statements are free from material misstatements, whether caused by error or
assess
fraud.
Write a memo to Mr Mika discussing the audit objectives and an auditor's responsibilities
in detecting fraud as stipulated under ISA 240.

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Step 1 As per ISA 240 Auditors responsibilities relating to Fraud in an audit of financial statement

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Step 2 Auditor's responsibilities regarding fraud in an audit of financial statements

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Step 3 Conclusion to Mr. Mika about objectives and auditor's responsibilities

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can I have a proper memo-based answer script with appropriate discussion and cases as well as works of literature to explain the terms of responsibilities?

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