ISA240 fraud and error describe the responsibilities of both internal and external auditors in relation to...
ISA240 fraud and error describe the responsibilities
of both internal and external auditors in relation to fraud and
error.
Explain the differences between the responsibility of internal and
external auditors for the prevention,detection and reporting of
fraud and error.
Homework Answers
Responsibility of Internal Auditors in relation to fraud and error: The Internal Auditor is responsible for assessing the risk of material misstatement due to fraud and error. Internal Auditor responsible for assessing internal controls.Auditor is required to report to the management about the shortcomings of the internal control system.Preventive action for any type of risk can be recommended by the internal auditor to the concern management.Internal Auditor assess the risk in the processes of the company.All the reporting by the internal auditor will be addresses to the management.
Responsibility of External Auditors in relation to fraud and error: External Auditor is responsible for review the financial statements of the company.Auditor are responsible to comment on the financial statements of the company.Risk inherent with the financial statements is the primary responsibility of the external auditor to addresses such risk.
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