A. In conducting the audit so as to achieve its objective, the overall objective of the independent auditor is to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to report on the financial statements in accordance with the auditor's findings.

REQUIRED:

(a) Distinguish between management's responsibility and the auditor's responsibility for the audit of financial statement. (3 Marks)

(b) State THREE (3) cautionary actions an auditor should take when there is a significant risk of management fraud. (3 Marks)

(c) Distinguish the implication of fraudulent financial reporting and misappropriation of assets to the users of financial statement. (4 Marks)

PLEASE ANSWER WITH EXPLANATION IN DETAIL