159 paragraphs found
The public sector auditor’s responsibilities relating to fraud may be a result of law, regulation or other authority, applicable to public sector entities or separately covered by the auditor’s mandate. Consequently, the public sector auditor’s …
Although the auditor cannot be expected to disregard past experience of the honesty and integrity of the entity’s management and those charged with governance, the auditor’s professional scepticism is particularly important in considering the risks of …
An audit performed in accordance with Australian Auditing Standards rarely involves the authentication of documents, nor is the auditor trained as or expected to be an expert in such authentication. [16] However, when the auditor identifies conditions …
The discussion may include such matters as: An exchange of ideas among engagement team members about how and where they believe the entity’s financial report (including the individual financial statements and the disclosures) may be susceptible to …
Management accepts responsibility for the entity’s internal control and for the preparation of the entity’s financial report. Accordingly, it is appropriate for the auditor to make enquiries of management regarding management’s own assessment of the risk …
In some entities, particularly smaller entities, the focus of management’s assessment may be on the risks of employee fraud or misappropriation of …
In the case of entities with multiple locations, management’s processes may include different levels of monitoring of operating locations, or business segments. Management may also have identified particular operating locations or business segments for …
The auditor’s enquiries of management may provide useful information concerning the risks of material misstatements in the financial report resulting from employee fraud. However, such enquiries are unlikely to provide useful information regarding the …
Examples of others within the entity to whom the auditor may direct enquiries about the existence or suspicion of fraud include: Operating personnel not directly involved in the financial reporting process. Employees with different levels of authority. …
Management is often in the best position to perpetrate fraud. Accordingly, when evaluating management’s responses to enquiries with an attitude of professional scepticism, the auditor may judge it necessary to corroborate responses to enquiries with …