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

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