Types of accounting errors :

    Error of omission -- a transaction that is not recorded.
    Error of commission -- a transaction that is calculated incorrectly. ...

There are generally two types of errors and frauds that auditors need to be aware of:

1. Errors: These are unintentional mistakes made by individuals or within the accounting system that result in misstatements in the financial statements. Examples of errors include mathematical mistakes, data entry errors, or misclassification of transactions.

2. Frauds: These are intentional acts that involve the manipulation, alteration, or misrepresentation of financial statements or other financial records. Fraudulent activities can include embezzlement, misappropriation of assets, fraudulent financial reporting, or corruption.

The duties of an auditor regarding errors and frauds include:

1. Detection: Auditors are responsible for detecting material misstatements in the financial statements, whether they are due to errors or frauds. They use various auditing procedures and techniques to identify potential risks and indicators of fraud or errors.

2. Reporting: If auditors identify errors or frauds during their examination, they have a duty to report these findings to the appropriate parties. This includes reporting to management and the audit committee of the entity being audited, as well as in some cases, reporting to regulatory authorities or law enforcement agencies.

3. Communication: Auditors should communicate any identified errors or frauds to management, highlighting the significance and potential impact on the financial statements. They should also provide recommendations for remedial actions to address the issues identified.

4. Professional Skepticism: Auditors are required to maintain a skeptical mindset throughout the audit process, actively questioning and challenging the information provided to them. This helps auditors in identifying potential errors or frauds, as they do not simply accept the information at face value.

In summary, the auditor's role is to assess the risk of errors and frauds, detect any misstatements, report their findings, and provide recommendations to address the issues identified. They act as independent and objective watchdogs, ensuring the integrity and reliability of financial statements.