During the audit of financial statements, an auditor discovers that financial statement might be materially misstated due to the existence of fraud. Describe the auditor s responsibility according to

During the audit of financial statements, an auditor discovers that financial statement might be materially misstated due to the existence of fraud. Describe the auditor’s responsibility according to SAS No. 99 (AU316) for discovering financial statement fraud, what the auditor should do if he is precluded from applying necessary audit procedures to discover the suspected fraud, and what the auditor should do if he finds that the fraud materially affects the integrity of the financial statements.

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