Professional Documents
Culture Documents
Fraud is a deliberate misrepresentation of a material fact to gain an unfair advantage. Misstatements related to fraud: 1. Misstatements arising from fraudulent financial reporting intentional misstatements or omissions of amounts or disclosures designed to deceive financial statement users usually involving the override of controls by management 2. Misstatements arising from misappropriation of assets involving theft and embezzlement of an entitys assets
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Audit Procedures
Conduct enquiries of management and others within the entity, including: the Audit Committee internal auditors those outside management (e.g. operational personnel) those outside the finance function (e.g. in-house legal counsel) Consider results of analytical procedures (including revenue analytics) Be aware of conditions generally present to commit fraud and assess risks of fraud throughout the audit Evaluate managements programmes and controls relating to fraud Examine journal entries and other adjustments Review accounting estimates, current and retrospective, for biases Evaluate business rationale for significant unusual transactions Add an element of unpredictability in audit procedures year to year Use of fraud or forensic specialists - if applicable
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