Auditors responsibility with regard to the prevention and detection of errors and frauds is as follows:-
(i) The auditor should remind directors of their responsibilities in prevention and detection of fraud and errors in the engagement letter or other communication and the need to have a system of internal control as a deterrent to errors and irregularities.
(ii) Property plan, perform and evaluate his audit work so as to have a reasonable expectation of detecting material misstatements in the financial statements, whether they are caused by fraud, other irregularities or errors.
(iii) Using professional scepticism in performing auditing to detect misstatement in the financial statements.
(iv) The auditor must obtain sufficient relevant reliable audit evidence to support his opinion. In regard to errors and irregularities he should have sufficient evidence that no material errors and irregularities have occurred or if they have occurred,
then they have been either corrected and/or been properly disclosed in the financial statements.
(v) Conducting the audit using professional competence and exercising due care to protect the users of financial statements from fraud and error.
(vi) Other remedies include qualified report, disclaimer opinion, management letter etc if they get persistent frauds and errors in the accounts.