Description

The financial statement auditor’s overall responsibility is to obtain sufficient appropriate audit evidence to provide reasonable assurance as to whether the financial statements are materially misstated due to fraud or error. The difficulty is that there are inherent limitations related to detecting fraud due to deliberate schemes to conceal the intent to deceive, such as collusion. This module will highlight the audit procedures most effective in identifying, assessing, and responding to fraud risk.

Major Topics:

• Explain the expectation gap with financial statement users regarding the auditor’s responsibilities for preventing and detecting fraud
• Fraud inquiries and engagement team discussion points
• Identifying and responding to fraud risk on an audit
• Testing journal entries and other tests for management override
• Required fraud and non-compliance communications by various auditing, including communications required by Government
• Auditing Standards, PCAOB Audit Standards, and International Standards on Auditing