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Fraud & error p7
Fraud & error p7
Fraud & error p7
Fraud & error p7
Fraud & error p7
Fraud & error p7
Fraud & error p7
Fraud & error p7
Fraud & error p7
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Fraud & error p7
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Fraud & error p7

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  • Transcript

    • 1. Fraud v Error
    • 2. Fraud v Error Intentional
    • 3. Fraud v ErrorIntentional
    • 4. Fraud v ErrorIntentional Misinterpretation
    • 5. Fraud v ErrorIntentional Misinterpretation
    • 6. Fraud v ErrorIntentional Misinterpretation Incorrect Accounting
    • 7. Fraud v ErrorIntentional Misinterpretation Incorrect Accounting
    • 8. Fraud v Error Intentional Misinterpretation Incorrect AccountingThere may be requirements to report suspicions of fraud, but not error
    • 9. Management v Auditor
    • 10. Management v Auditor Prepare T&F
    • 11. Management v AuditorPrepare T&F
    • 12. Management v AuditorPrepare T&F Prevent & Detect Fraud
    • 13. Management v AuditorPrepare T&F Prevent & Detect Fraud
    • 14. Management v AuditorPrepare T&F Prevent & Detect Fraud Internal Controls
    • 15. Management v AuditorPrepare T&F Prevent & Detect Fraud Internal Controls Good Corporate Governance
    • 16. Management v Auditor
    • 17. Management v Auditor Report on T&F
    • 18. Management v Auditor Report on T&F
    • 19. Management v Auditor Report on T&FReasonable Assurance Fraud & ERROR
    • 20. Management v Auditor Report on T&F Reasonable Assurance Fraud & ERROR
    • 21. Management v Auditor Report on T&F Reasonable Assurance Fraud & ERRORPrimary F&E responsibility lies with management
    • 22. Management v Auditor Report on T&F Reasonable Assurance Fraud & ERROR Primary F&E responsibility lies with managementconsider the risk of material misstatement
    • 23. Management v Auditor
    • 24. Management v Auditor Reduce fraud opportunities
    • 25. Management v Auditor Reduce fraud opportunities Establish a culture where no fraud
    • 26. Management v Auditor Reduce fraud opportunities Establish a culture where no fraud due to the likelihood of detection
    • 27. Professional Scepticism
    • 28. Professional ScepticismDiscuss fraud within specific characteristics of the audit & potential effect on FS
    • 29. Professional ScepticismDiscuss fraud within specific characteristics of the audit & potential effect on FS
    • 30. Professional ScepticismDiscuss fraud within specific characteristics of the audit & potential effect on FSTalk to management about controls to detect or prevent fraud
    • 31. Professional ScepticismDiscuss fraud within specific characteristics of the audit & potential effect on FSTalk to management about controls to detect or prevent fraudObtain evidence that fraud has not occurred or detected and corrected
    • 32. Fraud/Error is Suspected?
    • 33. Fraud/Error is Suspected?
    • 34. Fraud/Error is Suspected? Effect on FS?
    • 35. Fraud/Error is Suspected? Effect on FS?
    • 36. Fraud/Error is Suspected? Effect on FS? Document in Audit files
    • 37. Fraud/Error is Suspected? Effect on FS? Document in Audit files
    • 38. Fraud/Error is Suspected? Effect on FS? Additional Document in Testing? Audit files
    • 39. Fraud/Error is Suspected? Effect on FS? Extent of misstatement Additional Document in Testing? Audit files
    • 40. Fraud/Error is Suspected? Effect on FS? Extent of misstatement Additional Document in Testing? Audit files
    • 41. Fraud/Error is Suspected? Effect on FS? Extent of misstatement Effect on Additional Document in Risk? Testing? Audit files
    • 42. Fraud/Error is Suspected? Effect on FS? Extent of misstatement Effect on Additional Document in Risk? Testing? Audit files
    • 43. Fraud/Error is Suspected? Effect on FS? Extent of misstatement Effect on Additional Document in Risk? Testing? Audit filesDiscuss withManagement
    • 44. Fraud/Error is Suspected? Effect on FS? Extent of misstatement Effect on Additional Document in Risk? Testing? Audit filesDiscuss withManagementTell them to get legaladvice if fraud is suspected
    • 45. Fraud/Error is Suspected? Effect on FS? Extent of misstatement Effect on Additional Document in Risk? Testing? Audit filesDiscuss withManagementTell them to get legaladvice if fraud is suspected
    • 46. Fraud/Error is Suspected? Effect on FS? Extent of misstatement Effect on Additional Document in Risk? Testing? Audit filesDiscuss with If ManagementManagementTell them to get Suspected? legaladvice if fraud is suspected
    • 47. Fraud/Error is Suspected? Effect on FS? Extent of misstatement Effect on Additional Document in Risk? Testing? Audit filesDiscuss with If ManagementManagementTell them to get Suspected? legal Get legal advice or rarely resignadvice if fraud is suspected
    • 48. Fraud/Error is Suspected? Effect on FS? Extent of misstatement Effect on Additional Document in Risk? Testing? Audit filesDiscuss with If ManagementManagementTell them to get Suspected? legal Get legal advice or rarely resignadvice if fraud is suspected
    • 49. Fraud/Error is Suspected? Effect on FS? Extent of misstatement Effect on Additional Document in Risk? Testing? Audit files ConsiderDiscuss with If Management ReportManagementTell them to get Suspected? Impact legal Get legal advice or rarely resignadvice if fraud is suspected
    • 50. Fraud/Error is Suspected? Effect on FS? Extent of misstatement Effect on Additional Document in Risk? Testing? Audit files ConsiderDiscuss with If Management ReportManagementTell them to get Suspected? Impact legal Get legal advice or rarely resignadvice if fraud is suspected
    • 51. Fraud/Error is Suspected? Effect on FS? Extent of misstatement Effect on Additional Document in Risk? Testing? Audit files ConsiderDiscuss with If Management ReportManagementTell them to get Suspected? Impact legal Get legal advice or rarely resignadvice if fraud is suspected Report to Authorities?
    • 52. Fraud/Error is Suspected? Effect on FS? Extent of misstatement Effect on Additional Document in Risk? Testing? Audit files ConsiderDiscuss with If Management ReportManagementTell them to get Suspected? Impact legal Get legal advice or rarely resignadvice if fraud is suspected Report to Authorities? Consider Confidentiality
    • 53. The Auditor - Criminal Liability
    • 54. The Auditor - Criminal LiabilityAccepting appointment without being qualified
    • 55. The Auditor - Criminal LiabilityAccepting appointment without being qualified Being involved with fraud
    • 56. The Auditor - Criminal LiabilityAccepting appointment without being qualified Being involved with fraud Insider Dealing
    • 57. The Auditor - Criminal LiabilityAccepting appointment without being qualified Being involved with fraud Insider Dealing Money Laundering
    • 58. The Auditor - Civil Liability
    • 59. The Auditor - Civil Liability Negligent (careless) auditing
    • 60. The Auditor - Civil Liability Negligent (careless) auditingSued by Client company under contract law
    • 61. The Auditor - Civil Liability Negligent (careless) auditingSued by Client company under contract law Sued by banks etc under negligence
    • 62. The Auditor - Duty of skill & Care
    • 63. The Auditor - Duty of skill & Care Depends on the circumstance
    • 64. The Auditor - Duty of skill & Care Depends on the circumstanceeg. Accepting the word of management after suspicion is aroused
    • 65. The Auditor - Duty of skill & Care Depends on the circumstanceeg. Accepting the word of management after suspicion is aroused Follow ISAs and show this in working papers
    • 66. The Auditor - Professional competence
    • 67. The Auditor - Professional competenceAchieve, and maintain, professional knowledge
    • 68. The Auditor - Professional competence Achieve, and maintain, professional knowledgeeg. Formal & Informal training + experience
    • 69. The Auditor - Professional competence Achieve, and maintain, professional knowledgeeg. Formal & Informal training + experience Awareness of general business developments, such as dropbox and e-commerce
    • 70. The Auditor - Due care
    • 71. The Auditor - Due careActing diligently in accordance with technical and professional standards
    • 72. The Auditor - Due care Acting diligently in accordance with technical and professional standardsmeans applying knowledge minimising the chance of mistakes being made
    • 73. The Auditor - Due care Acting diligently in accordance with technical and professional standardsmeans applying knowledge minimising the chance of mistakes being made Enough time to complete work with due care Staff fully understand the objectives
    • 74. The Auditor - Negligence - A Civil Wrong
    • 75. The Auditor - Negligence - A Civil Wrong Duty of Care
    • 76. The Auditor - Negligence - A Civil Wrong Duty of Care Duty is broken
    • 77. The Auditor - Negligence - A Civil Wrong Duty of Care Duty is broken Damage results
    • 78. The Auditor - Negligence - A Civil Wrong Duty of Care Duty is broken Damage resultsThe auditor does not exist to aid investment decisions, unless verbal assurances given
    • 79. Fraudulent Financial Reporting
    • 80. Fraudulent Financial Reporting IntentionalMisstatement!
    • 81. Fraudulent Financial Reporting
    • 82. Fraudulent Financial Reporting Manipulation
    • 83. Fraudulent Financial Reporting Manipulation Misrepresentation
    • 84. Fraudulent Financial Reporting Manipulation Misrepresentation Misapplication
    • 85. Fraudulent Financial Reporting Manipulation Misrepresentation Misapplication Earnings Management

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