Effect of detected fraud on Financial Statements

[alihassan1414]

If as an auditor, i found a fraud in financial statements committed by management or employee and management is ready to neutralize the effect, then what will be the effect on final report?


Regards,

[ciapk]

Dear Hassan

Auditors responsibility is to express an opinion on Financial Statement if a fraud identified but corrected by the management it means that financial statements are giving true and fair view so need not to be reported in Audit report. Further, reporting of fraud to regulatory or other authorities vary country to country, one should take legal opinion in this regard. Plz Check ISA 240 for further guidance.

[alihassan1414]

thanx