An auditor's examination performed in accordance with Australian auditing standard ASA 240 generally should:

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An auditor's examination performed in accordance with Australian auditing standard ASA 240 primarily deals with the auditor's responsibilities regarding fraud in financial statements. The standard requires the auditor to understand fraud, assess the risk of fraud, and respond to risks of material fraud by obtaining evidence that the financial statements are free from material misstatement due to fraud. As a part of the risk assessment, the auditor should review conditions and events that increase the risk of material misstatement due to fraud, such as management's attitude towards fraud or the nature of the industry. The standard does not guarantee the detection of all illegal acts or illegalities related to environmental reporting, nor should it be relied upon to disclose violations of client confidentiality.

An Auditor's Examination Performed in Accordance with Australian Auditing Standard