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Auditors’ Fraud-Related Responsibilities - Coggle Diagram
Auditors’ Fraud-Related Responsibilities
The Auditor’s Responsibility
Relating to Fraud in an Audit of Financial Statements
Misstatements
Misstatements arising from misappropriation of assets
Misstatements arising from fraudulent financial reporting
material misstatement
Omission, misstating or obscuring it could reasonably be expected to influence the decisions that the primary users of general purpose financial statements make on the basis of those financial statements, which provide financial information about a specific reporting entity.
Quantitative : Threshold and Qualitative factors: Intent
Although the auditor identity the occurrence of the fraud they do not make legal determination.
The Auditor’s Responsibility
Relating to Fraud in an Audit of Financial Statements responsibility to consider fraud in an audit of financial statements
Identification and assessment
Financial Statement Level
Classes of transaction, account balances and disclosures
Responses to the assessed risks of material misstatement
Evaluation of audit evidence
Communications to management and with those charged with
governance
Internal Auditing and Fraud
Have sufficient knowledge of fraud to identify red flags
Be alert to opportunities that could allow fraud
Consider fraud risks in the assessment of internal control design
I
nternational Standard on Auditing (ISA) 265—Communicating Deficiencies in
Internal Control to Those Charged with Governance and Management
Provides guidance regarding the auditor’s responsibility to communication
Internal Audit Standards Related to Fraud
Due Professional Care
Reporting to Senior Management and the Board
Proficiency
Written communication requirements
A description of the deficiencies and an explanation
Sufficient information
Government Auditors’ Fraud-Related Responsibilities
provides high-quality standards in the form of International Standards for the public sector in an effort to promote good governance.
ISSAI 1240 provides supplementary guidance for ISA 240
Consideration of the concept of abuse
Inability to withdraw from the engagement
Broader audit objectives
Additional communications about fraud-related matters
Operates as an umbrella organization for the external government audit community