Which are the types of misstatements relevant to the auditor's consideration of fraud in a financial statement audit?

Question

Quizplus · Accepted Answer

Both misstatements arising from fraudulent financial reporting and misappropriations of assets are relevant to the auditor's consideration of fraud in a financial statement audit. Fraudulent financial reporting involves intentional misstatements or omissions of amounts or disclosures in financial statements to deceive users, while misappropriation of assets involves the theft or misuse of an entity's assets. Both types of fraud can result in material misstatements in the financial statements, which the auditor must consider and address during the audit.

Which Are the Types of Misstatements Relevant to the Auditor's