In those instances where a misstatement is or may be the result of fraud and the

In those instances where a misstatement is or may be the result of fraud and the effect either is material or cannot be determined an auditor must take the following steps:1) Attempt to obtain additional evidence.
2) Consider the implications for other aspects of the audit.
3) Discuss the matter and the approach for further investigation with an appropriate level of management that is at least one level above those involved and with senior management and the audit committee. This is appropriate even if the matter might be considered inconsequential.
4) If appropriate suggest the client consult with legal counsel.QUESTION: How can auditors determine where the line of divide is? In other words where do you separate duties?