Procedures When Fraud is suspected
Whenever the auditor encounters situation that might indicate that there is a material mis-statement in the financial statements resultant from fraud or error, the auditor must perform processes to establish whether the financial statements are materially mis-stated.
Whenever the auditor recognizes a misstatement, the auditor must consider whether such a misstatement might be analytic of fraud and when there is such a sign, the auditor must consider the implications of the mis-statement in association to other features of the audit, mainly the consistency of management representations.
- Evaluation and Disposition of Misstatements
- Documentation
- Communication
- Communication of Misstatements
- Communication of Audit Matters
- Communication of Misstatements Resulting From Fraud to Management
- Communications to Regulatory and Enforcement Authorities
- Irregularities
- Materiality
- Indication of irregularities
- Reporting to the members