Responsibilities of EA & IA on detect fraud

Main reason for audit work

EA main responsibility is to form an opinion on the financial statement.
Therefore the main focus of the audit work is therefore ensure true & fair view of the financial statement .
The detection of fraud is therefore not the main focus of EA

The main focus of the IA is to review the effectiveness of the Internal control system.Part of the IA responsibilty is to prevent and detect the fraud an errors being occured.

Materiality

In reaching the audit opinion & perform the audit work, EA takes into account the materiality concept which he is not responsible to check all transaction but choosing a sample of the material item. Audit procedure are planned to have a reasonable likelihood to identifying material fraud

However the IA may using much lower materiality limits to carry out detailed substantive testing review of transactions to detect fraud from their audit testing.

Identification of fraud

In situation where EA does detect fraud, then the EA may need to consider the implication for the entire audit ,therefore they have the responsibilities to extend testing to inot other areas because the risk of provide incorrect opinion will be increased

Where IA does detect fraud, they may need to extend testing to others areas to ensure similar fraud not occured in other areas.