Fraud and error
In this 10-minute lesson, you'll learn how fraud and error affect financial statements and what your role as an auditor actually is in detecting and preventing them.
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In this lesson
- 0:00 Fraud, error and auditor responsibilities
- 0:47 Three types of misstatement explained
- 1:48 Management vs auditor responsibilities
- 4:12 Auditor's specific duties and procedures
- 5:36 Non-compliance with laws and regulations
- 6:46 Identifying non-compliance in practice
- 8:58 Ethical standards for reporting concerns
- 9:49 Audit responsibilities in high-risk scenarios
About this lesson
The video clarifies a critical distinction: whilst management and those charged with governance hold primary responsibility for preventing and detecting fraud and error, your job is to plan and perform audit procedures to obtain reasonable assurance that the financial statements are free from material misstatement—whether caused by fraud or error. You'll explore the different types of misstatement, management's control responsibilities, and how to identify and report non-compliance with laws and regulations. This content is essential for Audit and Assurance papers and helps you understand the realistic boundaries of audit responsibility, a common area of confusion in exams and practice.
Duration: 11m
Transcript
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