With reference those charged with governance – if fraud is identified etc and if it results in a material misstatement, the auditor must report it to those charged with governance. My question is why material misstatement, if the fraud does not result in a material misstatement can one infer that no report should be made those charged with governance?
No, if it’s material, report to those charged with governance. If not material, report to executive management ( unless it’s they who are committing the fraud, in which case, report it to those charged with governance )