176832
Descrição
Mapa Mental por littlepaz_2001, atualizado more than 1 year ago
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Criado por littlepaz_2001
mais de 11 anos atrás
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ISA 240: The auditors responsibilities relating to fraud in an audit of financial statements
- WHAT IS FRAUD
- Is an INTENTIONAL act by one or more individuals among management,
those charges with governance, employees or third parties involving the
use of DECEPTION to obtain an UNJUST OR ILLEGAL advantage.
- Auditor's main concern is with fraud that causes a MATERIAL MISSTATEMENT in financial statements.
- FRAUDULENT FINANCIAL REPORTING
- Manipulation, falsification or alteration of
accounting records/supporting documents
- Misrepresentation of events, transactions or other information
in the financial statements
- Intentional misapplication of accounting principles
- Intentional misapplication of accounting principles
- Misrepresentation of events, transactions or other information
in the financial statements
- Manipulation, falsification or alteration of
accounting records/supporting documents
- MISAPPROPRIATION OF ASSETS
- Theft of the entity's assets
- Theft of the entity's assets
- FRAUDULENT FINANCIAL REPORTING
- Auditor's main concern is with fraud that causes a MATERIAL MISSTATEMENT in financial statements.
- ERROR:- caused by a mistake
- Is an INTENTIONAL act by one or more individuals among management,
those charges with governance, employees or third parties involving the
use of DECEPTION to obtain an UNJUST OR ILLEGAL advantage.
- RESPONSIBILITIES WITH REGARD TO FRAUD
- Management and those charged with governance are PRIMARILY responsible for preventing & detecting fraud.
- Auditors are responsible for carrying out an audit in accordance with international auditing standards - ISA 240
- Auditors are responsible for carrying out an audit in accordance with international auditing standards - ISA 240
- Management and those charged with governance are PRIMARILY responsible for preventing & detecting fraud.
- AUDITOR'S APPROACH TO THE POSSIBILITY OF FRAUD
- GENERAL
- Key responsibility of the auditor is obtaining reasonable assurance
that the financial statements taken as a whole are free from material
misstatement whether caused by fraud or error
- 1) Identify and assess the risks of material misstatement
- 2) Obtain sufficient appropriate audit evidence through designing and implementing appropriate responses.
- 3) Respond appropriately to fraud or suspected fraud identified during the audit.
- Discussion by members of the engagement team of the susceptibility of the entity's
financial statements to material misstatement due to fraud, including how fraud might
occur.
- Discussion by members of the engagement team of the susceptibility of the entity's
financial statements to material misstatement due to fraud, including how fraud might
occur.
- 3) Respond appropriately to fraud or suspected fraud identified during the audit.
- 2) Obtain sufficient appropriate audit evidence through designing and implementing appropriate responses.
- 1) Identify and assess the risks of material misstatement
- Key responsibility of the auditor is obtaining reasonable assurance
that the financial statements taken as a whole are free from material
misstatement whether caused by fraud or error
- RISK ASSESSMENT PROCEDURES
- Undertake risk assessment procedures as set out in ISA 315 which would
include assessing the risk of fraud
- Inquiries of managemnt, consideration of when fraud risk factors are
present, consideration of results of analytical procedures,
consideration of any other relevant information
- The size, complexity and ownership
characteristics of the entity have a significant
influence on the consideration of relevant fraud
risk factors.
- Examples of fraud risk factors:-
- Incentives/pressures
- Opportunities
- Attitudes/rationalisations
- Attitudes/rationalisations
- Opportunities
- Incentives/pressures
- Identify fraud risks
- Relates this to what could go wrong at a financial statement level.
- Considers likely magnitude of potential misstatement.
- Considers likely magnitude of potential misstatement.
- Relates this to what could go wrong at a financial statement level.
- Examples of fraud risk factors:-
- The size, complexity and ownership
characteristics of the entity have a significant
influence on the consideration of relevant fraud
risk factors.
- Inquiries of managemnt, consideration of when fraud risk factors are
present, consideration of results of analytical procedures,
consideration of any other relevant information
- Undertake risk assessment procedures as set out in ISA 315 which would
include assessing the risk of fraud
- RESPONDING TO ASSESSED RISKS
- The auditor shall determine overall responses to address the assessed risks of
material misstatement due to fraud at the financial statement level.
- Consider the assignment and
supervision of personnel
- Consider the accounting policies
used by the entity
- Incorporate an element of unpredictability in the
selection of the nature,timing and extent of audit
procedures.
- The auditor shall design and perform further audit procedures whose nature, timing and
extent are responsive to the assessed risks of material misstatement due to fraud at the
assertion level.
- Consider the assignment and
supervision of personnel
- The auditor shall determine overall responses to address the assessed risks of
material misstatement due to fraud at the financial statement level.
- GENERAL
- EVALUATION OF AUDIT EVIDENCE
- Ensure it is consistent and that it achieves its aim of answering the risks of fraud.
- Analytical procedures and any misstatements found.
- Reliability of written representations.
- Reliability of written representations.
- Analytical procedures and any misstatements found.
- Ensure it is consistent and that it achieves its aim of answering the risks of fraud.
- REPORTING
- Has identified a fraud or has obtained information that indicates a fraud may exist.
- Shall communicate these matters on a timely basis to the appropriate level of management.
- If the auditor has identified or suspects fraud involving management or employees who have significant internal control
- Shall communicate these matters to those charged with governance
- May have a statutory duty to report fraudulent behaviour to REGULATORS outside the entity.
- Shall communicate these matters to those charged with governance
- Shall communicate these matters on a timely basis to the appropriate level of management.
- Has identified a fraud or has obtained information that indicates a fraud may exist.
- UNABLE TO CONTINUE
- Consider the need to withdraw from the engagement if he uncovers
EXCEPTIONAL CIRCUMSTANCES with regard to fraud.
- Consider the need to withdraw from the engagement if he uncovers
EXCEPTIONAL CIRCUMSTANCES with regard to fraud.
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