Communication on fraud suspection, Auditing

Communication:

Whenever the auditor recognizes a misstatement resultant from fraud, or a suspected fraud, or error, the auditor must consider the auditor’s duty to communicate that information to management, those charged with supremacy and, in some conditions, to regulatory and enforcement authorities.

Communication of Misstatements Resulting From Error to Management and to Those Charged With Governance:

When the auditor has recognized a material misstatement resultant from error, the auditor must communicate the misstatement to the suitable level of management on a timely basis, and consider the requirement to report it to those charged with governance in accord with ISA 260.

“Communication of Audit Matters With Those Charged With Governance.”:

The auditor must inform those charged with authority of those uncorrected misstatements aggregated by the auditor throughout the audit which were determined by management to be immaterial, both separately and in the aggregate, to the financial statements carried as an entire.

Communication of Misstatements Resulting From Fraud to Management and to Those Charged With Governance:

When the auditor has:

(a) Recognized a fraud, whether or not it outcomes in a material mis-statement in the financial statements; or
(b) Acquired evidence which indicates that fraud might exist (even when the potential effect on financial statements would not be material); the auditor must communicate such matters to the suitable level of management on a timely basis, and believe the requirement to report such matters to those charged with governance in accord with ISA 260.

Posted Date: 12/3/2012 5:38:30 AM | Location : United States







Related Discussions:- Communication on fraud suspection, Assignment Help, Ask Question on Communication on fraud suspection, Get Answer, Expert's Help, Communication on fraud suspection Discussions

Write discussion on Communication on fraud suspection
Your posts are moderated
Related Questions
Matters of Audit Process Another matter to be covered as: 1. Accounting policies: these should be uniform all over the group and should be properly disclosed. 2. Consoli

Statutory Audits The audits are compulsory below statute in the case of a large amount of number of undertakings involving the following as:        Undert

Necessity of Transactions with Related Parties Transactions along with related parties are essential for several reasons: (a) Several financial scandals including related p

Research and development Panorama Ltd manufactures and distributes a wide range of general pharmaceutical products. Selected audited data for the reporting period ended 31 Dec

You are auditing Pell grant provided to students at six state universities. The Pell grant program is a federal financial aid program for college students. The maximum grant a stud

AUDIT RISK As we have seen many parties rely on the audit opinion to make decisions, and therefore it is now a well established fact that if the auditor gives an audit opinion

Recognize the Related Parties The auditor should review information provided through the management and directors recognize the names of all identified related parties and sho

Conducting a critical review of published literature about a topic is fundamental step in developing your research skills. A first step towards a review of the literature is to sea

With internal audit we always require to be careful of any manipulations within the company itself. Errors and frauds within the company cannot be denied /overlooked at any cost.

what are the things we need to check in statutory audit of bank?