ISA 240 requires the auditor to identify and respond to presumed fraud risks. Regardless of your risk assessment, these items must be addressed as a significant risk.
But what is the reason behind this? And how do we approach these risks?
In this session we will discuss revenue, related parties and management override of controls. We will unpack the risks behind these items and how to identify if you have sufficient appropriate evidence over the identified risk. We will also look at common review findings.
• Revenue as a presumed fraud risk
o Examples of fraud schemes in revenue
o Risk rebuttal
• Significant risk response – revenue
• Sampling and selecting items
• Procedures to perform for each assertion
• Common review findings and deficiencies
• Presumed fraud risk of management override of control
• How can management commit fraud through
o Journals
o Related parties
• Identifying related parties and applying professional skepticism
o What constitutes a related party
• Testing related parties and journals
o Identifying the population
o Selecting items for testing
o Procedures to be performed
o Documentation
• Common review findings and deficiencies
☒Auditors
☒First year SAICA Trainees
☒Second year SAICA trainees
☒Third year SAICA trainees
☒Fourth year SAICA trainees
☒Fifth year SAICA trainees
☒Audit mangers
☒Audit partners
