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Auditing I – Chapter 6: Audit Responsibilities and Objectives
Alexander Steven Themas (008201800046)
Deby Az Zahra Ashidiqi (008201800066)
Ruth Velien Hebingadil Thio (008201800027)
1. Sofie Tangkilisan & Leonor Tilman
I want to ask, what is auditor's responsibility to detect the illegal acts? thank you.
Answer: There are 2 categories of dividing illegal acts. For the first type, illegal acts that
have a direct and material effect on lineitem amounts in the financial statements, the auditor
has the same responsibility as for errors and irregularities. That is, the auditor should design
the audit to provide reasonable assurance that the financial statements amounts are free from
material misstatement resulting from these direct effect illegal acts.
For the second type, SAS No. 54 states that an audit in accordance with generally accepted
auditing standards (GAAS) normally does not include audit procedures specifically
designed to detect illegal acts having an indirect effect on financial statements. The auditor
is responsible for evaluation of such acts only when information comes to his or her attention
