Fraud and removal of auditors

This topic has 1 reply, 2 voices, and was last updated 13 years ago by Ken Garrett.

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June 3, 2013 at 11:13 pm #128749
Samia
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Hi,
If it is not the responsibility of the auditor to detect fraud, then why do the notes mention that auditors could be removed if they fail to detect a material fraud in the company’s accounts and directors lose faith in them.
June 4, 2013 at 8:17 am #128805
Ken Garrett
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The important word is ‘material’. Auditors should detect material misstatement and a material fraud would be one such misstatement. However, auditors are not responsible for finding every small fraud or irregularity.
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