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When is the auditor responsible about the fraud in his work?

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Question added by Aboranat Osman Mohamed Abdelhafith , Senior External Auditor , National Audit Chamber
Date Posted: 2014/08/06
Kapila Jayasinghe
by Kapila Jayasinghe , Internal Audit Manager , Hatton National Bank Plc

Auditor principally is not responsible for detection of frauds that might have undergone in the subject client's organisation and essentially affected the financial statements in concern. However audit must bring a deterrent effect to the organisation where organisation's employees avoid committing frauds. Further auditor must plan and execute audit with the awareness of possible frauds. In principle prevention and detection of frauds lies with Management. 

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