The PCAOB generally illuminates an auditor's responsibilities with respect to detecting material misstatements resulting from fraud when performing a financial statement audit. However, an auditor's responsibilities don't end there. An auditor's consideration of fraud is incorporated into many PCAOB auditing standards.Summary. Objective - This study examines the nature, types and methods of financial reporting fraud committed by Chinese listed companies with a view to understanding corporate management fraud behavior in China. Such an understanding is important to prevent fraud and achieve better financial results. Accounting fraud is an intentional and material misstatement of financial statements or financial reporting, or the commission of an illegal act that has a direct and material effect on the fraudulent financial reporting. accounting estimates. CPAs evaluate whether differences between best-evidence-based estimates and estimates included in the financial statements indicate possible management bias.