Auditors should plan and perform their audits to provide reasonable assurance of detecting material misstatements in financial statements, including those resulting from fraud.

April 16, 2023April 16, 2023 Discipline: Accounting

1, Auditors should plan and perform their audits to provide reasonable assurance of detecting material misstatements in financial statements, including those resulting from fraud.

Required: Answer the following questions in well written sentences. Each item is worth 5 points.
a. Distinguish between fraudulent financial reporting and misappropriation of assets.
b. Describe the three fundamental conditions necessary for the commission of fraud. Provide an illustration of these three conditions for a case of fraudulent financial reporting.
c. Describe the three ways in which the auditors may respond to fraud risks in an audit.1, Auditors should plan and perform their audits to provide reasonable assurance of detecting material misstatements in financial statements, including those resulting from fraud.

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