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M5 Assignment 2: Discussion—Misstated Financial Statements

Auditing.

As the partner in charge of the audit of AV Imports and Exports at Dewey, Wright, and Moore, you have been working on the audit engagement of the company for the previous year-end, and you are in the final stages of completing the audit. You plan to have all the fieldwork completed and the report signed by May 10 of the current year. You are concerned about some transactions that have occurred just after year-end that may affect the financial statements you are auditing. You are aware that this area is governed by Statement of Financial Accounting Standards (SFAS) 165. You research the details of the standard.

Research an auditor’s responsibilities using your textbook, the Argosy University online library resources, and the Internet. Respond to the following:

  • What are your responsibilities to detect fraud while performing a financial statement audit? (Do not discuss specific audit procedures, only the responsibilities.)
  • What is your responsibility to report errors and fraud as detected to management, the board of directors, and parties outside the entity?

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