Auditors Must Consider the Possibility of Fraud by Employees or Management

question 42

Essay

Auditors must consider the possibility of fraud by employees or management on every audit engagement.They must also consider the possibility that the client has not complied with laws.
(a)Distinguish between employee and management fraud.
(b)Describe the auditors' responsibility for the detection of fraud in an audit.
(c)Describe the auditors' responsibility regarding noncompliance with laws by a client.

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Definitions:

Periaqueductal Gray

An area of the midbrain that, when stimulated, decreases pain.

Dorsal Horn Neurons

are neurons located in the dorsal horn of the spinal cord, playing a crucial role in processing sensory information.

Dorsal Horns

The part of the spinal cord away from the stomach that receives sensory input and that may play an important role in the perception of pain.

Spinal Cord

The main pathway for information connecting the brain and peripheral nervous system, crucial for sensory and motor functions below the head.