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When assessing the fraud risk, auditors consider the risk of employee fraud and the risk of management fraud. For each of these two types of

When assessing the fraud risk, auditors consider the risk of employee fraud and the risk of management fraud. For each of these two types of fraud, provide a well explained example (using a real fraud case or a fictitious situation) (be specific, indicate the effect on the financial statements) and indicate the effect on the audit if such a fraud is discovered by the auditors when they start their audit procedures.

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