Discuss the Differences in the Auditor's Responsibilities for Discovering (1)

question 115

Essay

Discuss the differences in the auditor's responsibilities for discovering (1) material errors,
(2) material fraud, (3) illegal acts having a direct effect on the financial statements, and (4) illegal acts that do not have a direct effect on the financial statements.

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Definitions:

Incidental Damages

Minor costs or expenses that arise indirectly from a breach of contract.

Substitute Goods

are products or services that can be used in place of each other due to their similar characteristics, affecting consumer choice.

Reasonable Expenses

Costs that are necessary and appropriate for completing a task or project, considering the circumstances.

Substitute Widgets

Alternate or replacement products used in place of original items in various applications.