Audit Program Design

A Brief Synopsis of Your Responsibility In spotting and Reporting Fraud Fraudulent fiscal insurance coverage harms users by providing nonsensical financial statement information for their decision making. When assets argon misappropriated, stockholders, creditors, and another(prenominal)s atomic number 18 harmed because assets are no longer available to their just owners (Arens, Elder, & Beasley, 2006). jibe to line of Accounting Standards (SAS) no 1, Codification of Auditing Standards and Procedures, the listener has a office to conception and dress the size up to happen valid impudence about whether the financial statements are trigger off with of sensible misstatement, whether caused by error or joke. Because of the nature of audit differentiate and the characteristics of fraud, the auditor is able to obtain reasonable, but non absolute, arrogance that corporal misstatements are detected. The auditor has no state to plan and perform the audit to ob tain reasonable say-so that misstatements, whether caused by error or fraud, that are not material to the financial statements are detected (Farrell & Franco, 1999). In addition to SAS No. 1, Statement of Accounting Standards No.

82 states that the auditor has the responsibility to plan and perform an audit to obtain reasonable presumption about whether financial statements are free of material misstatement. Auditors are required to do the following: Consider the presence of assay of infection factorssuch as fraudulent financial reporting and the misappropriation of assets misstatements. Assess the risk of material misstatement due to fraudthis as! sessment may be performed in conjunction with other risk assessment, for example with gibe or inherent risk. mystify an appropriate audit solutionin some pile the existing procedures are adequate to obtain reasonable assurance that the financial statements are free of material misstatements then an outright opinion will be given. In other helping auditors may extend...If you want to micturate a full essay, rank it on our website: OrderCustomPaper.com

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