Case $4\mathrm{.}5$ Homework Questions

$1$a

What responsibility does an auditor have to detect material misstatements due to errors and fraud?

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$1$b

What two main categories of fraud affect financial reporting?

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$2$

Three conditions are often present when fraud exists. Using hindsight, identify factors present at Xerox that are indicative of each of the three fraud conditions: incentives, opportunities, and attitudes