You have been employed as the audit assistant in the accounting firm of Mika and Partners You were informed that the firm is not very modern in its audit approach. On your fint day of work, Mr Mika, one of the audit partners, calls you into his office and hands oover a copy of A Practical Manual for Auditors' handbook that has been used by the firm since 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: the denection of fraud, all errors and unlauful acts committed by the audit client is the responsibility of an auditor. ... Based on your audit knowledge, this does not appear to be the current practice as stipulated under ISA 240-The Auditor's Responibilities 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 fraud. Write a memo to Mr Mika discussing the audit objectives and an auditor's responsibilities in detecting fraud as stipulated under ISA 240.

You have been employed as the audit assistant in the accounting firm of Mika and Partners You were informed that the firm is not very modern in its audit approach. On your fint day of work, Mr Mika, one of the audit partners, calls you into his office and hands oover a copy of A Practical Manual for Auditors' handbook that has been used by the firm since 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: the denection of fraud, all errors and unlauful acts committed by the audit client is the responsibility of an auditor. ... Based on your audit knowledge, this does not appear to be the current practice as stipulated under ISA 240-The Auditor's Responibilities 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 fraud. Write a memo to Mr Mika discussing the audit objectives and an auditor's responsibilities in detecting fraud as stipulated under ISA 240.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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