Abhishek Panegal asked 4 years ago
Dear Sir,
In this question wouldn’t the reference SA 240 also be required ? As it is fraud and auditor’s reporting responsibilities are laid down there under SA 240. Like only mentioning that further “SA 240 also lays down reporting responsibilities, management fraud more difficult to detect than employee fraud as management can override controls” then they work in collusion.
Kindly revert at earliest. Thank you.
1 Answers
Ravi Staff answered 4 years ago
Yes you can give reference about SA 240
but if question asks from company’s act point of view only 143(12) would be sufficient
even if question is silent 143(12) has become famous in exams, first explain it and then give reference of SA 240
icai give importance to 143(12) and doesn’t even consider SA 240