Procedures when fraud is suspected, Auditing

Procedures When Fraud is suspected

Whenever the auditor encounters situation that might indicate that there is a material mis-statement in the financial statements resultant from fraud or error, the auditor must perform processes to establish whether the financial statements are materially mis-stated.

Whenever the auditor recognizes a misstatement, the auditor must consider whether such a misstatement might be analytic of fraud and when there is such a sign, the auditor must consider the implications of the mis-statement in association to other features of the audit, mainly the consistency of management representations.

  • Evaluation and Disposition of Misstatements
  • Documentation
  • Communication
  • Communication of Misstatements
  • Communication of Audit Matters
  • Communication of Misstatements Resulting From Fraud to Management
  • Communications to Regulatory and Enforcement Authorities
  • Irregularities
  • Materiality
  • Indication of irregularities
  • Reporting to the members

 

Posted Date: 12/3/2012 5:31:41 AM | Location : United States







Related Discussions:- Procedures when fraud is suspected, Assignment Help, Ask Question on Procedures when fraud is suspected, Get Answer, Expert's Help, Procedures when fraud is suspected Discussions

Write discussion on Procedures when fraud is suspected
Your posts are moderated
Related Questions
what is the role of a joint auditor

Principles of Auditors Procedures i. The financial statements should be prepared on the source of conditions existing on the balance sheet date. ii. The material post balance

Question: Explain the type of audit conducted by the sponsor when he suspects or comes to know that the site will be audited by FDA. A Mention type of audit conducted by the

Verification of Liabilities - Audit Process Usually speaking, the auditor's duty along with regard to liabilities can be summarised follows as: 1. To confirm the existence of

Your firm has recently been appointed auditors of the Social Transport Corporation and you are commencing the audit of the wages system. The Corporation has about 2500 employee

Management Representations as a Source of Audit Evidence International Standard on Auditing as abbreviated ISA 580 Management Representations gives guidance and standards on t

The Concept of Audit Evidence Auditing is an evidence gathering exercise. It is an exercise carried out to confirm the assertions made by the management in carrying out the man

Benefits of Internal Audit are following: It is in-expensive. No charted accounted is needed to audit internally. Faults will be removed before preparing financial stateme

Historic Costs Methods - Long Term Contracts You will notice such this exercise is completely dependent on the company estimating its further costs.  This is wherever the audi

Issues in Audit of Intangible Assets The two key issues in such audit of intangible assets are: (a) Recognition of intangible assets The audit problem here is to mak