Question

Explain the steps authitor can take to protect themselves against failure to detect fraud.

Answer 1

Steps to be taken by auditors to protect themselves against failure to detect fraud-
1) Auditor should plan and perform audit with attitude of professonal skepticism.
2) He should obtain reasonable assurance that financial statements in their entirety.
3) Auditor should check that whether internal control is in existence and evaluate its effciency.
4) Auditor shall check whether there is proper internal check system in organisation.
5) He should ask management information if he detect any fraud or error.
6) He should design Test check sample so there will be no leakages in detection of any fraud or error.