Question: Why is fraud that is committed by management always considered material, even if the amount is not quantitatively material? 2. Distinguish fraudulent financial reporting from

Why is fraud that is committed by management always considered material, even if the amount is not quantitatively material?

2. Distinguish fraudulent financial reporting from misappropriation of assets. Discuss why it is important for an auditor to know the difference between these two.

3. Why should auditors understand their clients performance measured? Discuss.

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