Are financial statements not done by financial accountants ,not management accountant? Question 2 someone to explain to me the answer and why it is not the auditors responsibility to detect fraud an management to prevent it .
Because it is not the auditor’s job to detect fraud. It is the auditor’s job to report if the financial statements give a true and fair view, meaning that, to a reasonable level of confidence, there are no material misstatements. So, small frauds that are immaterial could occur without the auditors even looking for them. There should be a reasonable chance that large, material frauds will be detected by the auditors, but even that is not guaranteed, particularly because fraudsters will usually attempt to disguise their actions.
The term ‘accountant’ isn’t mentioned in the question.
It is NOT the auditor’s responsibility to prepare the FS. It is the directors’ responsibility. The FS are then audited (‘checked’) by independent auditors.
cbmb says
I Got 60%
manyunyire68800 says
Are financial statements not done by financial accountants ,not management accountant? Question 2 someone to explain to me the answer and why it is not the auditors responsibility to detect fraud an management to prevent it .
tauqeer1996 says
In question 2 why is the answer not correct where it says it is managments responsibility to prevent fraud and auditors to detect it?
Ken Garrett says
Because it is not the auditor’s job to detect fraud. It is the auditor’s job to report if the financial statements give a true and fair view, meaning that, to a reasonable level of confidence, there are no material misstatements. So, small frauds that are immaterial could occur without the auditors even looking for them. There should be a reasonable chance that large, material frauds will be detected by the auditors, but even that is not guaranteed, particularly because fraudsters will usually attempt to disguise their actions.
abdulhafizu says
In question 2 i thought audit have responsibity of detecting fraud.
Ken Garrett says
No. Frauds can be large or small and are often well-concealed. It is not the auditor’s responsibility to discover them.
azaalimited says
Its saying in q3 its managers responsibily to lrepare financial statements i thaught its accountants.
Ken Garrett says
I assume you mean Q3.
The term ‘accountant’ isn’t mentioned in the question.
It is NOT the auditor’s responsibility to prepare the FS. It is the directors’ responsibility. The FS are then audited (‘checked’) by independent auditors.
boiwiz says
Got 60%
totasalih says
igot it 60%
saararamees says
yeh? i got 100
alphonsus says
I noticed that the money laundering was not mentioned in notes. Please any reason for this?
Ken Garrett says
It is mentioned Pages 48, 49. However, I think we should expand this and will do so soon.
Thanks for pointing it out.
alphonsus says
I scored 80%. Thanks Open Tuition
3888753ethan says
I got 80%.
pkays says
I got 60%
junaidkochikaran says
i got 80% 馃檪