Communiquez avec les autres et partagez vos connaissances professionnelles

Inscrivez-vous ou connectez-vous pour rejoindre votre communauté professionnelle.

Suivre

If The Miss Statements or Fraud is Found in Financial Statements After The External Audit Is It Management Responsibility or External Auditors ?

user-image
Question ajoutée par Muhammad Umair Arain , General Accountant , Heart Beat Medical Center & One Day Surgery LLC
Date de publication: 2015/02/25
Lesley Lanag CMA CPA
par Lesley Lanag CMA CPA , Senior Accountant , Takaful Emarat Insurance (P.S.C)

The misstatement in financial statement is still the responsibility of the management even after issuance of audited reports. The auditors, while they performed audit procedures, they can only give REASONABLE assurance, not absolute assurance that misstatement due to fraud. Hence, they cannot ensure error-free misstatements. 

Misstatements due to fraud may remain undetected due to collusion. However, if there is a basis to believe that such exists, the auditor should consider this in coming up with the audit program.

Mobeen Tahir
par Mobeen Tahir , Credit Officer , Tawuniya Insurance

The management is resposible for any misstatment or fraud in financial statement before and after external audit. The external auditor is responsible for the audit report they issued.

ahmed amin
par ahmed amin , Audit supervisor , KPMG

It is management responsibility. But, the auditor must do tests to ensure that there is no material misstatement will change his audit opinion for the subsequent events.

If the event arose after the audit opinion issuance, while the auditor see this event as a material event they need to notify the management and those charged with governance and make the necessary action to prevent rely upon the audited Financial statements.

Falak Sher Khan Khan
par Falak Sher Khan Khan , Accountant , Star Marketing (Pvt) Ltd

Its Management responsibility.

SUNILKUMAR KANNAN
par SUNILKUMAR KANNAN , Chief Accounts Officer , Amna Foods Industries (p) limited

Commonly it is responsibility of management, otherwise or it doesn't  proven proven the auditors also party to the fraud done.  

yousuf baba
par yousuf baba , Accountant , Gayathri Agro Tech

Activity Based Management (ABM) and Activity Based Costing(ABC) are inter-related methodologies.  ABC provides the strategic information you need to make informed management decisions. ABM is the real time monitoring of the tactical activities you undertake to deliver those strategic decisions. 

Mohammed Shahid Ullah
par Mohammed Shahid Ullah , Executive Director (Finance) , Coal Power Generation Company Bangladesh Limited

The responsibility of preparation of Financial Statements is the Management Responsibility. So, Any miss statements or Fraud happening in the Financial Statement is sole responsible of Management.

Ahmed kandil
par Ahmed kandil , Cost Controller , Battour Holding Cpompany

agree with mr  Lesley Lanag

the responsibility will upon management responsibilty

Atasang Kingsley Ateno
par Atasang Kingsley Ateno , Financial Manager , Qatar Golf International

I think if the financial statement is unqualify by the external auditor any material misstatement discover after the published financial statement then the faults is that of the external auditor. The external auditor responsibility is to give an opinion on the financial statement, therefore, he/she is there to identify any fraud or misstatement.  

Utilisateur supprimé
par Utilisateur supprimé

Its obviously Management's responsibility

 

More Questions Like This