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Hi sir, am i right to say that external auditors have no responsibility in relation to prevention and detection of fraud and error. But, they are responsible for obtaining reasonable assurance that the financial statements, taken as a whole, are free from material misstatement, whether caused by fraud or error.
Therefore, the external auditor has some responsibility for considering the risk of material misstatement due to fraud
Right ?
Correct. There should be reasonable assurance that material misstatements caused by either fraud or error are detected during the audit. However, there is no obligation on the auditor to find every incident of fraud.
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