SlideShare a Scribd company logo
1 of 2
Download to read offline
The Auditor shall evaluate whether the information gathered from risk assessment procedures
indicates that one or more fraud risk factor are present and it should be taken into account in
identifying and assessing fraud risks. Fraud risk factors does not necessarily indicate the
existence of fraud, however it normally present.
Fraud risk factors are events or conditions that indicates
The auditor might conclude that a fraud risk exists even when only one of these three conditions
is present.
1. Presumption of Fraud Risk Involving Improper Revenue Recognition- The auditor should
presume that there is a fraud risk involving improper revenue recognition and evaluate which
types of revenue, revenue transactions, or assertions may give rise to such risks.
2. Consideration of the Risk of Omitted, Incomplete, or Inaccurate Disclosures- The auditor's
evaluation of fraud risk factors in accordance with paragraph 65 should include evaluation of
how fraud could be perpetrated or concealed by presenting incomplete or inaccurate disclosures
or by omitting disclosures that are necessary for the financial statements to be presented fairly in
conformity with the applicable financial reporting framework.
3. Consideration of the Risk of Management Override of Controls-. The auditor's
identification of fraud risks should include the risk of management override of controls.
Solution
The Auditor shall evaluate whether the information gathered from risk assessment procedures
indicates that one or more fraud risk factor are present and it should be taken into account in
identifying and assessing fraud risks. Fraud risk factors does not necessarily indicate the
existence of fraud, however it normally present.
Fraud risk factors are events or conditions that indicates
The auditor might conclude that a fraud risk exists even when only one of these three conditions
is present.
1. Presumption of Fraud Risk Involving Improper Revenue Recognition- The auditor should
presume that there is a fraud risk involving improper revenue recognition and evaluate which
types of revenue, revenue transactions, or assertions may give rise to such risks.
2. Consideration of the Risk of Omitted, Incomplete, or Inaccurate Disclosures- The auditor's
evaluation of fraud risk factors in accordance with paragraph 65 should include evaluation of
how fraud could be perpetrated or concealed by presenting incomplete or inaccurate disclosures
or by omitting disclosures that are necessary for the financial statements to be presented fairly in
conformity with the applicable financial reporting framework.
3. Consideration of the Risk of Management Override of Controls-. The auditor's
identification of fraud risks should include the risk of management override of controls.

More Related Content

Similar to The Auditor shall evaluate whether the information gathered from ris.pdf

A top-down approach begins at the financial statement level- It requir.docx
A top-down approach begins at the financial statement level- It requir.docxA top-down approach begins at the financial statement level- It requir.docx
A top-down approach begins at the financial statement level- It requir.docx
janettjz6sfehrle
 
Risk-Assessment-and-Internal-Control.pdf
Risk-Assessment-and-Internal-Control.pdfRisk-Assessment-and-Internal-Control.pdf
Risk-Assessment-and-Internal-Control.pdf
BestInsurance2
 
1Market manipulation also known as price- stock manipulation is a type.docx
1Market manipulation also known as price- stock manipulation is a type.docx1Market manipulation also known as price- stock manipulation is a type.docx
1Market manipulation also known as price- stock manipulation is a type.docx
KeithldMSandersony
 
Bribery risk assessment slide for education
Bribery risk assessment slide for educationBribery risk assessment slide for education
Bribery risk assessment slide for education
infoqtc
 
relevance and benefits of holding public accounting firm more accoun.pdf
relevance and benefits of holding public accounting firm more accoun.pdfrelevance and benefits of holding public accounting firm more accoun.pdf
relevance and benefits of holding public accounting firm more accoun.pdf
fabmallkochi
 
Chapter 9Audit Risk AssessmentPrepared by Dr Phil Saj1.docx
Chapter 9Audit Risk AssessmentPrepared by Dr Phil Saj1.docxChapter 9Audit Risk AssessmentPrepared by Dr Phil Saj1.docx
Chapter 9Audit Risk AssessmentPrepared by Dr Phil Saj1.docx
mccormicknadine86
 
page 8 III. OUTLINE OF STATEMENT ON AUDITING STANDARDS NO. 99, CON.pdf
page 8 III. OUTLINE OF STATEMENT ON AUDITING STANDARDS NO. 99, CON.pdfpage 8 III. OUTLINE OF STATEMENT ON AUDITING STANDARDS NO. 99, CON.pdf
page 8 III. OUTLINE OF STATEMENT ON AUDITING STANDARDS NO. 99, CON.pdf
alicesilverblr
 
page 6-7 Fraud (previously referred to as irregularities) -Inten.pdf
page 6-7 Fraud (previously referred to as irregularities) -Inten.pdfpage 6-7 Fraud (previously referred to as irregularities) -Inten.pdf
page 6-7 Fraud (previously referred to as irregularities) -Inten.pdf
alicesilverblr
 

Similar to The Auditor shall evaluate whether the information gathered from ris.pdf (20)

A top-down approach begins at the financial statement level- It requir.docx
A top-down approach begins at the financial statement level- It requir.docxA top-down approach begins at the financial statement level- It requir.docx
A top-down approach begins at the financial statement level- It requir.docx
 
The Auditors Responsibilities Relating to Fraud in an Audit of Financial Stat...
The Auditors Responsibilities Relating to Fraud in an Audit of Financial Stat...The Auditors Responsibilities Relating to Fraud in an Audit of Financial Stat...
The Auditors Responsibilities Relating to Fraud in an Audit of Financial Stat...
 
Chapter 6
Chapter 6Chapter 6
Chapter 6
 
Auditing Principles2
Auditing Principles2Auditing Principles2
Auditing Principles2
 
Chapter one.ppt fraud auditing material section
Chapter one.ppt fraud auditing material sectionChapter one.ppt fraud auditing material section
Chapter one.ppt fraud auditing material section
 
Risk-Assessment-and-Internal-Control.pdf
Risk-Assessment-and-Internal-Control.pdfRisk-Assessment-and-Internal-Control.pdf
Risk-Assessment-and-Internal-Control.pdf
 
Standards on auditing 540 550
Standards on auditing 540 550Standards on auditing 540 550
Standards on auditing 540 550
 
2018 chapter 6 aud40AT
2018 chapter 6 aud40AT2018 chapter 6 aud40AT
2018 chapter 6 aud40AT
 
1Market manipulation also known as price- stock manipulation is a type.docx
1Market manipulation also known as price- stock manipulation is a type.docx1Market manipulation also known as price- stock manipulation is a type.docx
1Market manipulation also known as price- stock manipulation is a type.docx
 
Auditing for Internal Fraud
Auditing for Internal FraudAuditing for Internal Fraud
Auditing for Internal Fraud
 
14 Audit.pdf
14 Audit.pdf14 Audit.pdf
14 Audit.pdf
 
According to the Statement on Auditing Standards, Consideration of Fra.pdf
According to the Statement on Auditing Standards, Consideration of Fra.pdfAccording to the Statement on Auditing Standards, Consideration of Fra.pdf
According to the Statement on Auditing Standards, Consideration of Fra.pdf
 
Bribery risk assessment slide for education
Bribery risk assessment slide for educationBribery risk assessment slide for education
Bribery risk assessment slide for education
 
relevance and benefits of holding public accounting firm more accoun.pdf
relevance and benefits of holding public accounting firm more accoun.pdfrelevance and benefits of holding public accounting firm more accoun.pdf
relevance and benefits of holding public accounting firm more accoun.pdf
 
Chapter 9Audit Risk AssessmentPrepared by Dr Phil Saj1.docx
Chapter 9Audit Risk AssessmentPrepared by Dr Phil Saj1.docxChapter 9Audit Risk AssessmentPrepared by Dr Phil Saj1.docx
Chapter 9Audit Risk AssessmentPrepared by Dr Phil Saj1.docx
 
Sa 450
Sa 450Sa 450
Sa 450
 
Audit report- Consideration of Internal Control
Audit report- Consideration of Internal ControlAudit report- Consideration of Internal Control
Audit report- Consideration of Internal Control
 
Audit & Assurance _MA-2023_Suggested_Answers.pdf
Audit & Assurance _MA-2023_Suggested_Answers.pdfAudit & Assurance _MA-2023_Suggested_Answers.pdf
Audit & Assurance _MA-2023_Suggested_Answers.pdf
 
page 8 III. OUTLINE OF STATEMENT ON AUDITING STANDARDS NO. 99, CON.pdf
page 8 III. OUTLINE OF STATEMENT ON AUDITING STANDARDS NO. 99, CON.pdfpage 8 III. OUTLINE OF STATEMENT ON AUDITING STANDARDS NO. 99, CON.pdf
page 8 III. OUTLINE OF STATEMENT ON AUDITING STANDARDS NO. 99, CON.pdf
 
page 6-7 Fraud (previously referred to as irregularities) -Inten.pdf
page 6-7 Fraud (previously referred to as irregularities) -Inten.pdfpage 6-7 Fraud (previously referred to as irregularities) -Inten.pdf
page 6-7 Fraud (previously referred to as irregularities) -Inten.pdf
 

More from nandanbh86

Disorder of language An impairment of understanding and or express.pdf
Disorder of language An impairment of understanding and or express.pdfDisorder of language An impairment of understanding and or express.pdf
Disorder of language An impairment of understanding and or express.pdf
nandanbh86
 
At the organic chemistry level, we can look at the basicity in terms.pdf
At the organic chemistry level, we can look at the basicity in terms.pdfAt the organic chemistry level, we can look at the basicity in terms.pdf
At the organic chemistry level, we can look at the basicity in terms.pdf
nandanbh86
 
21. True. Choline is essential in the transportation and metabolism .pdf
21. True. Choline is essential in the transportation and metabolism .pdf21. True. Choline is essential in the transportation and metabolism .pdf
21. True. Choline is essential in the transportation and metabolism .pdf
nandanbh86
 
Well, DNA is the genetic material that determines.pdf
                     Well, DNA is the genetic material that determines.pdf                     Well, DNA is the genetic material that determines.pdf
Well, DNA is the genetic material that determines.pdf
nandanbh86
 

More from nandanbh86 (20)

HelloName.javaimport java.util.Scanner; public class HelloName.pdf
HelloName.javaimport java.util.Scanner; public class HelloName.pdfHelloName.javaimport java.util.Scanner; public class HelloName.pdf
HelloName.javaimport java.util.Scanner; public class HelloName.pdf
 
Disorder of language An impairment of understanding and or express.pdf
Disorder of language An impairment of understanding and or express.pdfDisorder of language An impairment of understanding and or express.pdf
Disorder of language An impairment of understanding and or express.pdf
 
Brain lacks lymph as it lacks the lymphatic system and lymph. It is .pdf
Brain lacks lymph as it lacks the lymphatic system and lymph. It is .pdfBrain lacks lymph as it lacks the lymphatic system and lymph. It is .pdf
Brain lacks lymph as it lacks the lymphatic system and lymph. It is .pdf
 
At the organic chemistry level, we can look at the basicity in terms.pdf
At the organic chemistry level, we can look at the basicity in terms.pdfAt the organic chemistry level, we can look at the basicity in terms.pdf
At the organic chemistry level, we can look at the basicity in terms.pdf
 
AnswerIf 14CO2 is bubbled through a suspension of cells undergoin.pdf
AnswerIf 14CO2 is bubbled through a suspension of cells undergoin.pdfAnswerIf 14CO2 is bubbled through a suspension of cells undergoin.pdf
AnswerIf 14CO2 is bubbled through a suspension of cells undergoin.pdf
 
B and D are correct. Serial interfaces by default use HDLC on Cisco .pdf
B and D are correct. Serial interfaces by default use HDLC on Cisco .pdfB and D are correct. Serial interfaces by default use HDLC on Cisco .pdf
B and D are correct. Serial interfaces by default use HDLC on Cisco .pdf
 
CCl4 is a tetrahedral molecule and is completely symmetrical, and so.pdf
  CCl4 is a tetrahedral molecule and is completely symmetrical, and so.pdf  CCl4 is a tetrahedral molecule and is completely symmetrical, and so.pdf
CCl4 is a tetrahedral molecule and is completely symmetrical, and so.pdf
 
7. B. T state is inactive and R state is active state. When AMP conc.pdf
7. B. T state is inactive and R state is active state. When AMP conc.pdf7. B. T state is inactive and R state is active state. When AMP conc.pdf
7. B. T state is inactive and R state is active state. When AMP conc.pdf
 
A and D are correct. By default interfaces permit all traffic in bot.pdf
A and D are correct. By default interfaces permit all traffic in bot.pdfA and D are correct. By default interfaces permit all traffic in bot.pdf
A and D are correct. By default interfaces permit all traffic in bot.pdf
 
Choice B is correct. pyrophosphate groups in iso.pdf
                     Choice B is correct.  pyrophosphate groups in iso.pdf                     Choice B is correct.  pyrophosphate groups in iso.pdf
Choice B is correct. pyrophosphate groups in iso.pdf
 
21. True. Choline is essential in the transportation and metabolism .pdf
21. True. Choline is essential in the transportation and metabolism .pdf21. True. Choline is essential in the transportation and metabolism .pdf
21. True. Choline is essential in the transportation and metabolism .pdf
 
when two elements share electrons, we call they f.pdf
                     when two elements share electrons, we call they f.pdf                     when two elements share electrons, we call they f.pdf
when two elements share electrons, we call they f.pdf
 
HELLO!! Fluorine, oxygen, nitrogen and carbon on.pdf
                     HELLO!!  Fluorine, oxygen, nitrogen and carbon on.pdf                     HELLO!!  Fluorine, oxygen, nitrogen and carbon on.pdf
HELLO!! Fluorine, oxygen, nitrogen and carbon on.pdf
 
Well, DNA is the genetic material that determines.pdf
                     Well, DNA is the genetic material that determines.pdf                     Well, DNA is the genetic material that determines.pdf
Well, DNA is the genetic material that determines.pdf
 
[(dw)(ds)=5se^(7w)(4w)] ,let us write this differential equation.pdf
[(dw)(ds)=5se^(7w)(4w)] ,let us write this differential equation.pdf[(dw)(ds)=5se^(7w)(4w)] ,let us write this differential equation.pdf
[(dw)(ds)=5se^(7w)(4w)] ,let us write this differential equation.pdf
 
What is the meaning and purpose of the interaction equationSolu.pdf
What is the meaning and purpose of the interaction equationSolu.pdfWhat is the meaning and purpose of the interaction equationSolu.pdf
What is the meaning and purpose of the interaction equationSolu.pdf
 
The correct gene order is leu+ trp+ met+ . This is because in all .pdf
The correct gene order is  leu+ trp+ met+ . This is because in all .pdfThe correct gene order is  leu+ trp+ met+ . This is because in all .pdf
The correct gene order is leu+ trp+ met+ . This is because in all .pdf
 
The mechanisms involve studying the interaction between the cytoki.pdf
The mechanisms involve studying the interaction between the cytoki.pdfThe mechanisms involve studying the interaction between the cytoki.pdf
The mechanisms involve studying the interaction between the cytoki.pdf
 
The passage of molecules from the surface of a liquid into the gaseo.pdf
The passage of molecules from the surface of a liquid into the gaseo.pdfThe passage of molecules from the surface of a liquid into the gaseo.pdf
The passage of molecules from the surface of a liquid into the gaseo.pdf
 
They took the control of the sonic hedgehog expression of axolotl. T.pdf
They took the control of the sonic hedgehog expression of axolotl. T.pdfThey took the control of the sonic hedgehog expression of axolotl. T.pdf
They took the control of the sonic hedgehog expression of axolotl. T.pdf
 

Recently uploaded

The basics of sentences session 3pptx.pptx
The basics of sentences session 3pptx.pptxThe basics of sentences session 3pptx.pptx
The basics of sentences session 3pptx.pptx
heathfieldcps1
 

Recently uploaded (20)

Towards a code of practice for AI in AT.pptx
Towards a code of practice for AI in AT.pptxTowards a code of practice for AI in AT.pptx
Towards a code of practice for AI in AT.pptx
 
Plant propagation: Sexual and Asexual propapagation.pptx
Plant propagation: Sexual and Asexual propapagation.pptxPlant propagation: Sexual and Asexual propapagation.pptx
Plant propagation: Sexual and Asexual propapagation.pptx
 
SOC 101 Demonstration of Learning Presentation
SOC 101 Demonstration of Learning PresentationSOC 101 Demonstration of Learning Presentation
SOC 101 Demonstration of Learning Presentation
 
Python Notes for mca i year students osmania university.docx
Python Notes for mca i year students osmania university.docxPython Notes for mca i year students osmania university.docx
Python Notes for mca i year students osmania university.docx
 
General Principles of Intellectual Property: Concepts of Intellectual Proper...
General Principles of Intellectual Property: Concepts of Intellectual  Proper...General Principles of Intellectual Property: Concepts of Intellectual  Proper...
General Principles of Intellectual Property: Concepts of Intellectual Proper...
 
How to setup Pycharm environment for Odoo 17.pptx
How to setup Pycharm environment for Odoo 17.pptxHow to setup Pycharm environment for Odoo 17.pptx
How to setup Pycharm environment for Odoo 17.pptx
 
FSB Advising Checklist - Orientation 2024
FSB Advising Checklist - Orientation 2024FSB Advising Checklist - Orientation 2024
FSB Advising Checklist - Orientation 2024
 
Graduate Outcomes Presentation Slides - English
Graduate Outcomes Presentation Slides - EnglishGraduate Outcomes Presentation Slides - English
Graduate Outcomes Presentation Slides - English
 
HMCS Vancouver Pre-Deployment Brief - May 2024 (Web Version).pptx
HMCS Vancouver Pre-Deployment Brief - May 2024 (Web Version).pptxHMCS Vancouver Pre-Deployment Brief - May 2024 (Web Version).pptx
HMCS Vancouver Pre-Deployment Brief - May 2024 (Web Version).pptx
 
UGC NET Paper 1 Mathematical Reasoning & Aptitude.pdf
UGC NET Paper 1 Mathematical Reasoning & Aptitude.pdfUGC NET Paper 1 Mathematical Reasoning & Aptitude.pdf
UGC NET Paper 1 Mathematical Reasoning & Aptitude.pdf
 
Basic Intentional Injuries Health Education
Basic Intentional Injuries Health EducationBasic Intentional Injuries Health Education
Basic Intentional Injuries Health Education
 
How to Create and Manage Wizard in Odoo 17
How to Create and Manage Wizard in Odoo 17How to Create and Manage Wizard in Odoo 17
How to Create and Manage Wizard in Odoo 17
 
COMMUNICATING NEGATIVE NEWS - APPROACHES .pptx
COMMUNICATING NEGATIVE NEWS - APPROACHES .pptxCOMMUNICATING NEGATIVE NEWS - APPROACHES .pptx
COMMUNICATING NEGATIVE NEWS - APPROACHES .pptx
 
Mehran University Newsletter Vol-X, Issue-I, 2024
Mehran University Newsletter Vol-X, Issue-I, 2024Mehran University Newsletter Vol-X, Issue-I, 2024
Mehran University Newsletter Vol-X, Issue-I, 2024
 
The basics of sentences session 3pptx.pptx
The basics of sentences session 3pptx.pptxThe basics of sentences session 3pptx.pptx
The basics of sentences session 3pptx.pptx
 
Accessible Digital Futures project (20/03/2024)
Accessible Digital Futures project (20/03/2024)Accessible Digital Futures project (20/03/2024)
Accessible Digital Futures project (20/03/2024)
 
Sociology 101 Demonstration of Learning Exhibit
Sociology 101 Demonstration of Learning ExhibitSociology 101 Demonstration of Learning Exhibit
Sociology 101 Demonstration of Learning Exhibit
 
REMIFENTANIL: An Ultra short acting opioid.pptx
REMIFENTANIL: An Ultra short acting opioid.pptxREMIFENTANIL: An Ultra short acting opioid.pptx
REMIFENTANIL: An Ultra short acting opioid.pptx
 
Google Gemini An AI Revolution in Education.pptx
Google Gemini An AI Revolution in Education.pptxGoogle Gemini An AI Revolution in Education.pptx
Google Gemini An AI Revolution in Education.pptx
 
How to Manage Global Discount in Odoo 17 POS
How to Manage Global Discount in Odoo 17 POSHow to Manage Global Discount in Odoo 17 POS
How to Manage Global Discount in Odoo 17 POS
 

The Auditor shall evaluate whether the information gathered from ris.pdf

  • 1. The Auditor shall evaluate whether the information gathered from risk assessment procedures indicates that one or more fraud risk factor are present and it should be taken into account in identifying and assessing fraud risks. Fraud risk factors does not necessarily indicate the existence of fraud, however it normally present. Fraud risk factors are events or conditions that indicates The auditor might conclude that a fraud risk exists even when only one of these three conditions is present. 1. Presumption of Fraud Risk Involving Improper Revenue Recognition- The auditor should presume that there is a fraud risk involving improper revenue recognition and evaluate which types of revenue, revenue transactions, or assertions may give rise to such risks. 2. Consideration of the Risk of Omitted, Incomplete, or Inaccurate Disclosures- The auditor's evaluation of fraud risk factors in accordance with paragraph 65 should include evaluation of how fraud could be perpetrated or concealed by presenting incomplete or inaccurate disclosures or by omitting disclosures that are necessary for the financial statements to be presented fairly in conformity with the applicable financial reporting framework. 3. Consideration of the Risk of Management Override of Controls-. The auditor's identification of fraud risks should include the risk of management override of controls. Solution The Auditor shall evaluate whether the information gathered from risk assessment procedures indicates that one or more fraud risk factor are present and it should be taken into account in identifying and assessing fraud risks. Fraud risk factors does not necessarily indicate the existence of fraud, however it normally present. Fraud risk factors are events or conditions that indicates The auditor might conclude that a fraud risk exists even when only one of these three conditions is present. 1. Presumption of Fraud Risk Involving Improper Revenue Recognition- The auditor should presume that there is a fraud risk involving improper revenue recognition and evaluate which types of revenue, revenue transactions, or assertions may give rise to such risks. 2. Consideration of the Risk of Omitted, Incomplete, or Inaccurate Disclosures- The auditor's evaluation of fraud risk factors in accordance with paragraph 65 should include evaluation of how fraud could be perpetrated or concealed by presenting incomplete or inaccurate disclosures or by omitting disclosures that are necessary for the financial statements to be presented fairly in conformity with the applicable financial reporting framework.
  • 2. 3. Consideration of the Risk of Management Override of Controls-. The auditor's identification of fraud risks should include the risk of management override of controls.