Subject: Auditing - Accounting

Case 3/ Which of the following considerations of fraud and error by the auditor is not required by ISA 240? A. The auditor should be satisfied that those charged with governance have been informed of any material weaknesses in internal control related to the prevention and detection of fraud B. When the auditor encounters circumstances that may indicate that there is a material misstatement in the financial statements resulting from fraud or error, the auditor should inform regulatory institutions C. The auditor should communicate to management any material weaknesses in internal control related to the prevention or detection of fraud and error D. Based on the risk assessment the auditor should design audit procedures to obtain reasonable assurance that material misstatements arising from fraud and error are detected