Question: Explain the auditor's responsibility for reporting the following: A defalcation that the client is willing to correct and portray in the financial statements

Explain the auditor's responsibility for reporting the following:
• A defalcation that the client is willing to correct and portray in the financial statements
• A defalcation that is material, but the client wishes to obscure by recording it in an "other expense" category
• A financial reporting fraud that the client wishes to include in an "other expense" category

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