materialityandrisk(英文版)(ppt66頁)-文庫吧資料
2025-02-27 08:19本頁面
【正文】 Fraudulent Misappropriation Financial of Assets Reporting 9 40 Two Types of Fraud Considered in an Audit ? Fraudulent financial reporting (―cooking the books‖)examples ? Falsification of accounting records ? Omissions of transactions ? Misappropriation of assetsexamples: ? Theft of assets ? Fraudulent expenditures 9 41 Professional Skepticism ? An attitude that includes a questioning mind and a critical assessment of audit evidence ? The engagement should be conducted recognizing possibility of material misstatement due to fraud ? An auditor should not be satisfied with less than persuasive evidence 9 42 Terminology Simplification To simplify the display, we will abbreviate the term used in the standard ―risk of material misstatement due to fraud‖ as follows: Risk of material misstatement = Risk of fraud due to fraud 9 43 Fraud Conditions (―Fraud Triangle‖) Incentive (Pressure) Opportunity Rationalization (Attitude) 9 44 Examples of Risks Factors for Fraudulent Reporting Financial stability or profitability is threatened by economic, industry, or entity operating conditions. Excessive pressure exists for management to meet debt requirements. Personal worth is materially threatened. 9 45 Examples of Risks Factors for Fraudulent Reporting There are significant accounting estimates that are difficult to verify. There is ineffective oversight over financial reporting. High turnover or ineffective accounting internal audit, or information technology staff exists. 9 46 Examples of Risks Factors for Fraudulent Reporting Inappropriate or inefficient munication and support of the entity’s values is evident. A history of violations of laws is known. Management has a practice of making overly aggressive or unrealistic forecasts. 9 47 Steps involved in Considering the Risk of Fraud 1. Staff discussion 2. Obtain information needed to identify risks 3. Identify risks 4. Assess identified risks 5. Respond to results of assessment 6. Evaluate audit evidence 7. Communicate about fraud 8. Document consideration of fraud 9 48 Step 1—Staff Discussion of the Risk of Fraud ? Brainstorm ? Consider how and where financial statements might be susceptible to fraud ? Exercise professional skepticism 9 49 Step 2—Obtain information needed to identify risk of fraud ? Inquiries of management, the audit mittee, internal auditors and others ? Consider results of analytical procedures ? Consider fraud risk factors ? Consider other information 9 50 Step 3—Identify Risks that may Result in Fraud and Consider ? Type of risk ? Significance of risk (magnitude) ? Likelihood of Risk ? Pervasiveness of risk 9 51 Step 4—Assess the identified risks after considering programs and controls ? Consider understanding of internal control ? Evaluate whether programs and controls address the identified risks ? Assess risks ta
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