Problem: Metropolis Bank is the wealth management division of National Bank (National) and provides investment, superannuation, insurance and private wealth solutions to corporate and institutional customers. The following is a list of the auditor's planning file notes in relation to fraud detection for the audit of the Metropolis Bank unit.
1. Ensure all material fraud instances are detected.
2. The auditor is responsible for maintaining professional scepticism throughout the audit, considering the potential for management override of controls and recognising the fact that audit procedures that are effective for detecting error may not be effective in detecting fraud.
3. Respond appropriately to fraud or suspected fraud identified during the audit.