Fraud Considerations for Auditors
Presenters : Lettie Janse van Vuuren CA(SA)
Learning objectives
By the end of this event the attendee should:
- Understand the implications of fraud on the auditor’s work;
- Understand the expectation gap that exists in practice;
- Understand ISA 240 in a nutshell plus its relationship to ISA 315 and ISA 330.
- Understand important fraud considerations:
- Who has the primary responsibility for the prevention and detection of fraud?
- The importance of applying professional scepticism and exercising professional judgment;
- The auditor's responsibilities to identify, assess and respond to the risks of material misstatement due to fraud;
- The auditor's considerations to respond to identified risks of material misstatement due to fraud, when there is a fraud investigation in progress;
- The use of forensic experts during fraud discussions, fraud inquiries and the execution of the audit, when specific factors are identified; and
- Get guidance and examples to assist in the application of auditing standards including practical tips and fraud interview techniques.
Content
The webinar will cover the following topics:
- Introduction to fraud considerations.
- The implications of fraud on the auditor’s work.
- The expectation gap that exists in practice;
- ISA 240 in a nutshell.
- How ISA 240 expands on the application of ISA 315 and ISA 330.
- Specific considerations:
- Primary responsibility for prevention and detection of fraud.
- Professional scepticism:
- Fostering professional scepticism.
- 7 critical things that enhance professional scepticism abilities.
- How to document professional judgment.
- Identifying, assessing and responding to material misstatement risk due to fraud:
- Examples of Fraud Risk factors.
- Identification and assessment of risks.
- Examples of fraud schemes in Revenue Recognition.
- Considerations on the use of a forensic expert.
- Responding to assessed risks.
- Characteristics that may be indicative of fraudulent transactions.
- Auditor's considerations when there is a fraud investigation in progress.
- Use of forensic experts when specific factors are identified.
- Auditing standards application:
- Guidance and examples.
- Forensic interview techniques.
- The effect of fraud on the auditor’s report.
