Discuss the auditor’s responsibility

What are the main findings of empirical studies with regard to the relation between audit report and lending decisions?
December 25, 2020
How do you evaluate the impact of performing such services on auditor independence, his/her performance and audit quality?
December 25, 2020

1. Define the term ‘red flags’ of fraud and discuss the auditor’s considerations in this respect.

2. If the auditor has identified a fraud or has obtained information that indicates that a fraud may exist, the auditor should communicate these matters to interested parties. Discuss the auditor’s responsibility with regard to:

(a) Communications with management and those charged with governance.

(b) Communications to regulatory and enforcement authorities.