Report to client on audit committees

Professional marks to be awarded for format (heading, introduction, conclusion) – 1 mark,  and clarity of explanation, use of language appropriate to client – 1 mark.

Generally 1 mark for each comment from list below:

Responsibilities in relation to fraud:

– ½ mark ref ISA 240
 – Management primary responsibility 
 – Management responsible for controls and culture of entity
 – Auditor only responsible for detection of frauds with material fi nancial statement impact 
 – Auditor not responsible for prevention but does make recommendations on controls
 – Both review strength of systems and controls  
Max marks 4