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Auditors’ Fraud-Related Responsibilities - Coggle Diagram
Auditors’ Fraud-Related Responsibilities
International Standard on Auditing (ISA) 240
Identification and assessment of the risks of material misstatement due to fraud
Responses to the assessed risks of material misstatement due to fraud
Characteristics of fraud
Misstatements arising from fraudulent financial reporting
Misstatements arising from misappropriation of assets
Evaluation of audit evidence
Purpose
To establish standards and provide guidance on the auditor’s
responsibility to consider fraud in an audit of financial statements
Communications to management and with those charged with governance
Communications to regulatory and enforcement authorities
265—Communicating Deficiencies in
Internal Control to Those Charged with Governance and Management
Written communication
A description of the deficiencies and an explanation of their
potential effects
Provides guidance regarding the auditor’s responsibility to communicate an organization’s internal control deficiencies
The IIA’s IPPF—Practice Guide: Internal Auditing and Fraud
Timely and sufficient corrective measures have been taken with respect to any noted control deficiencies or weaknesses
The plan for monitoring the program continues to be adequate for the program’s ongoing success
Management is actively retaining responsibility for oversight of the fraud risk management program.
Internal Audit Standards Related to Fraud
IIA Standard
1220—Due Professional Care
Internal auditors must apply the care and skill expected of a reasonably prudent and competent internal auditor
IIA Standard
2060—Reporting to Senior Management and the Board
The chief audit executive (CAE) must report periodically to senior
management and the board of directors
IIA Standard
1210—Proficiency
Internal auditors must possess the knowledge, skills, and other
competencies needed to perform their individual responsibilities
Government Auditors’ Fraud-Related Responsibilities
Consideration of the concept of abuse
Additional communications about fraud-related matters
Inability to withdraw from the engagement
Broader audit objectives