Q4: You are an induction and training officer for Maher Public Accountants, a leading accounting firm based in Dublin, Ireland. You are due to give a training course to a group of newly recruited audit trainees in fraud and error.

This is a particularly important course and audit trainees from previous cohorts have acknowledged the benefit of the course in their feedback.

The current cohort of audit trainees are particularly interested in understanding their responsibilities and those of the directors in the area of fraud and error.

Required: Prepare material for the audit trainees as part of the induction pack which covers the following:

(a) Identify and distinguish the responsibilities of the auditor and the directors with regards to fraud. Discuss the steps undertaken by auditors when they detect and suspect fraud.

(b) Critically examine the limitations of audit procedures in detecting fraud and error.