Understanding of Management’s and Auditor’s Responsibility for Detecting Errors, Material Fraud, and Illegal Acts

Purpose of Assignment

This assignment is critical for students to gain a fundamental understanding of management's and auditor's responsibility for detecting errors, material fraud, and illegal acts. This assignment provides a foundation for the entire course by setting the stage for more complex topics, while ensuring students understand what responsibilities each role plays in auditing and how they relate to each other. Students will present examples from their chosen company (see resource requirements).

Write a paper of no more than 1,050 words to include the following:

1. Describe the responsibilities of management for errors, omissions, material fraud, illegal acts, and provide examples.
2. Describe the responsibilities of auditors for errors, omissions, material fraud, illegal acts, and provide examples.
3. Compare and contrast the difference between management's and auditor's responsibilities. Provide examples.