An audit firm, Maz & Co. has just employed you as an Audit Assistant. You are aware that the firm is not up-to-date in its audit approach. On your first day in office, one of the partners, Tan Sri Mahmoud, invited you into his office and handed over a copy of "A Practical Manual for Auditors" handbook, which has been adopted by the firm since 2000. Tan Sri Mahmoud proudly informs you that "this is the primary reference handbook for auditing" used by the firm. You opened the handbook and read the following statement as contained on Page 15: "The detection of fraud, all errors and unlawful acts committed by the audit client is the responsibility of an auditor". Based on your audit knowledge, the above statement seems to be outdated and inaccurate because of the current practice as stated in ISA 240: The Auditor's Responsibilities Relating to Fraud in an Audit of Financial Statements. REQUIRED: (a) Explain the objectives of an audit of financial statements as prescribed in the Companies Act 2016 and ISA 200. (4 Marks) (b) Discuss auditor's responsibilities in detecting fraud as stipulated in ISA 240. (4 Marks) (c) Distinguish between fraud and error. Give TWO (2) examples of each category. (6 Marks) (d) Explain THREE (3) circumstances indicating a possibility that the financial statements may have been misstated. (6 Marks)