The document discusses the differences and relationships between fraud and error in accounting. It notes that fraud is intentional while error can occur due to misinterpretation or incorrect accounting. Management has primary responsibility for preventing and detecting fraud and error through internal controls and good corporate governance. Auditors are responsible for obtaining reasonable but not absolute assurance about whether the financial statements are free of material fraud or error. If fraud or error is suspected, auditors should perform additional testing, document findings, and discuss with management and consider reporting or legal impacts. The duties and liabilities of auditors are also summarized.
Cambio en la prisión preventiva en el EcuadorGina Godoy
Ley Orgánica Reformatoria al Código de Procedimiento Penal, Ley Interpretativa del artículo 169 del Código de procedimiento penal, Ley Orgánica de Garantías Jurisdiccionales y Control Constitucional y Código Orgánico de la Función Judicial.
Cambio en la prisión preventiva en el EcuadorGina Godoy
Ley Orgánica Reformatoria al Código de Procedimiento Penal, Ley Interpretativa del artículo 169 del Código de procedimiento penal, Ley Orgánica de Garantías Jurisdiccionales y Control Constitucional y Código Orgánico de la Función Judicial.
The Auditors Responsibilities Relating to Fraud in an Audit of Financial Stat...Dr. Soheli Ghose Banerjee
This presentation is an overview of SA 240 (R). Prepared with Prof. S. Sircar.
Dr. Soheli Ghose ( Ph.D (University of Calcutta), M.Phil, M.Com, M.B.A., NET (JRF), B. Ed).
Assistant Professor, Department of Commerce,St. Xavier's College, Kolkata.
Guest Faculty, M.B.A. Finance, University of Calcutta, Kolkata
If you would like to have a training session at your business to educate your employees how to identify & prevent occupational fraud please contact me at ann@yeagerboyd.com
“Nearly half of all victim organizations do not recover any losses that they suffer due to fraud” according to the 2012 Report to the Nations presented by the Association of Certified Fraud Examiners. Although, there are no statistics that report the total number of entities and the amount defrauded, regardless of size, any organization can become a victim of fraud. Kyle Anne Midkiff’s white paper, Act Now Before it’s Too Late, provides five important steps to help organizations of any size prevent fraud.
The GFC has affected the risk environment for organisations in many ways, one of which is the risk for internal and external fraud. Understanding the changes, and some of the specific areas of risk, and taking action is important to maintain effective corruption prevention
Compliance is about identifying the risks that the financial institution could encounter as a result of “Failing To Comply”.
Conduct & document comprehensive Risks Assessment; and the planned remedial measures in a manner appropriate to the requirements of the compliance rule!
This is my message.
21. Management v Auditor
Report on T&F
Reasonable Assurance Fraud & ERROR
Primary F&E responsibility lies with management
22. Management v Auditor
Report on T&F
Reasonable Assurance Fraud & ERROR
Primary F&E responsibility lies with management
consider the risk of material misstatement
30. Professional Scepticism
Discuss fraud within specific characteristics of
the audit & potential effect on FS
Talk to management about controls to detect or
prevent fraud
31. Professional Scepticism
Discuss fraud within specific characteristics of
the audit & potential effect on FS
Talk to management about controls to detect or
prevent fraud
Obtain evidence that fraud has not occurred or
detected and corrected
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 files
Discuss with
Management
44. Fraud/Error is Suspected? Effect on FS?
Extent of misstatement
Effect on Additional Document in
Risk? Testing? Audit files
Discuss with
Management
Tell them to get
legal
advice if fraud is
suspected
45. Fraud/Error is Suspected? Effect on FS?
Extent of misstatement
Effect on Additional Document in
Risk? Testing? Audit files
Discuss with
Management
Tell them to get
legal
advice if fraud is
suspected
46. Fraud/Error is Suspected? Effect on FS?
Extent of misstatement
Effect on Additional Document in
Risk? Testing? Audit files
Discuss with If Management
Management
Tell them to get Suspected?
legal
advice if fraud is
suspected
47. Fraud/Error is Suspected? Effect on FS?
Extent of misstatement
Effect on Additional Document in
Risk? Testing? Audit files
Discuss with If Management
Management
Tell them to get Suspected?
legal Get legal advice or rarely resign
advice if fraud is
suspected
48. Fraud/Error is Suspected? Effect on FS?
Extent of misstatement
Effect on Additional Document in
Risk? Testing? Audit files
Discuss with If Management
Management
Tell them to get Suspected?
legal Get legal advice or rarely resign
advice if fraud is
suspected
49. Fraud/Error is Suspected? Effect on FS?
Extent of misstatement
Effect on Additional Document in
Risk? Testing? Audit files
Consider
Discuss with If Management Report
Management
Tell them to get Suspected? Impact
legal Get legal advice or rarely resign
advice if fraud is
suspected
50. Fraud/Error is Suspected? Effect on FS?
Extent of misstatement
Effect on Additional Document in
Risk? Testing? Audit files
Consider
Discuss with If Management Report
Management
Tell them to get Suspected? Impact
legal Get legal advice or rarely resign
advice if fraud is
suspected
51. Fraud/Error is Suspected? Effect on FS?
Extent of misstatement
Effect on Additional Document in
Risk? Testing? Audit files
Consider
Discuss with If Management Report
Management
Tell them to get Suspected? Impact
legal Get legal advice or rarely resign
advice 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
Consider
Discuss with If Management Report
Management
Tell them to get Suspected? Impact
legal Get legal advice or rarely resign
advice if fraud is
suspected
Report to
Authorities?
Consider Confidentiality
63. The Auditor - Duty of skill & Care
Depends on the circumstance
64. The Auditor - Duty of skill & Care
Depends on the circumstance
eg. Accepting the word of management after
suspicion is aroused
65. The Auditor - Duty of skill & Care
Depends on the circumstance
eg. Accepting the word of management after
suspicion is aroused
Follow ISAs and show this in working papers
67. The Auditor - Professional competence
Achieve, and maintain, professional knowledge
68. The Auditor - Professional competence
Achieve, and maintain, professional knowledge
eg. Formal & Informal training + experience
69. The Auditor - Professional competence
Achieve, and maintain, professional knowledge
eg. Formal & Informal training + experience
Awareness of general business developments,
such as dropbox and e-commerce
71. The Auditor - Due care
Acting diligently in accordance with technical and
professional standards
72. The Auditor - Due care
Acting diligently in accordance with technical and
professional standards
means applying knowledge minimising the
chance of mistakes
being made
73. The Auditor - Due care
Acting diligently in accordance with technical and
professional standards
means applying knowledge minimising the
chance of mistakes
being made
Enough time to complete work with due care
Staff fully understand the objectives
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 results
The auditor does not exist to aid investment decisions,
unless verbal assurances given