Discuss briefly the auditor’s communications about possible fraud with various parties inside and outside the company.

1. What are the characteristics of fraud and the conditions required for financial fraud to occur?

2. What are the auditor’s responsibilities for detecting fraud in a financial statement audit?

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3. Why should an independent auditor have an attitude of professional scepticism in performing an audit?

4. What actions can companies take to prevent, deter and detect fraud?

5. Discuss briefly the auditor’s communications about possible fraud with various parties inside and outside the company.

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