When an audit clients financial statements are found to be materially misstated due to fraud and the

Question:

When an audit client’s are found to be materially misstated due to fraud and the auditor failed to discover the misstatement, what are the various potential consequences for the auditor? What are the likely allegations and charges and by whom? How does the of the audit client impact your answer?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Capital Structure
Capital structure refers to a company’s outstanding debt and equity. The capital structure is the particular combination of debt and equity used by a finance its overall operations and growth. Capital structure maximizes the market value of a...