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procedures that auditor adoptsthe auditorrsquos procedures will include1 getting an understanding of the entity as a whole in order to see the
measures to be taken by the individual auditorproper recruitment and training of all staffallocating staff to particular audits where they have the
higher normal riskseveral audit assignments involve high audit risk and usually in any client there will always be at least one high risk
normal audit riskindications that an audit is a normal risk audit are1 the client having management and staff who are competent and have integrity2
audit riskas we have seen many parties rely on the audit opinion to make decisions and therefore it is now a well established fact that if the
reporting to the membersexcept the faults and irregularities outcome in the accounts not giving an accurate and fair view or do not conform to
irregularitiesirregularities can be explained as intentional distortions of financial statements for whatever reason and also as misappropriation of
communications to regulatory and enforcement authoritiesthe auditorrsquos professional responsibility to sustain the confidentiality of client
communicationwhenever the auditor recognizes a misstatement resultant from fraud or a suspected fraud or error the auditor must consider the
evaluation and disposition of misstatements and the effect on the auditorrsquos reportwhenever the auditor verifies that or is not capable to
procedures when fraud is suspectedwhenever the auditor encounters situation that might indicate that there is a material mis-statement in the
responsibilities of the auditorthe auditor has no duty for the prevention and recognition of fraud and error though the annual audit might act as a
fraudulent financial reportinginvolves intentional misstatements or errors of amounts or disclosures in financial statements to mislead financial
fraud and errorisa 240 the auditorrsquos duty to consider fraud and error defines that whenever planning and performing audit procedures computing
meaning of the auditing definitiona orderly and efficient manner an organization which is run in an orderly and proficient manner is able to satisfy
internal control systemsisa 400 ldquointernal control systemrdquo means all the policies and processes ie internal controls accepted by the
managements interest in the accounting systemmanagement needs complete and accurate books of accounts becausethere is no other way the business can
the accounting systemisa 400 risk assessment and internal control accounting system are the sequence of tasks and records of an entity by which
questionable paymentsin some countries business is often gained by bribing ministers or public officials or officers of companies or firms with whom
discovery of unlawful actswhen an auditor discovers unlawful acts usually he is not expected to disclose to the police or other authorities unlessthe
illegal actsauditors may uncover criminal offences committed by a client or an employee of the client this puts them in a difficult place though the
liability to third partiesfor long time liability to third parties existed only in respect to physical damage liability for financial loss is a
the use of engagement lettersthere is a contractual relationship among an accountant and his client the accountant must therefore make sure that at
negligence in generalthere is no case against auditors and this made it hard to be accurate as to where the auditorrsquos legal liability falls
relevance of ias ifrs to auditingthe auditors should involve in their report that their view on whether the financial statements they report are