Fraud Risk - Complying with Minimum Audit Requirements 2.5 CPE

The financial statement auditor’s overall responsibility is to obtain sufficient appropriate audit evidence to provide reasonable assurance as to whether the financial statements are materially misstated due to fraud or error. The difficulty is that there are inherent limitations related to detecting fraud due to deliberate schemes to conceal the intent to deceive, such as collusion. This module will highlight the audit procedures most effective in identifying, assessing, and responding to fraud risk.

Major Topics:

• Explain the expectation gap with financial statement users regarding the auditor’s responsibilities for preventing and detecting fraud
• Fraud inquiries and engagement team discussion points
• Identifying and responding to fraud risk on an audit
• Testing journal entries and other tests for management override
• Required fraud and non-compliance communications by various auditing, including communications required by Government
• Auditing Standards, PCAOB Audit Standards, and International Standards on Auditing

Prerequisites

No advanced preparation or prerequisites are required for this course.
Designed For: Accountants who have responsibility for identifying, assessing, and responding to fraud risk on a financial statement audit.

Learning Objective

• Explore and explain the various types of fraud relevant to a financial statement audit.
• Discover and describe the symptoms of fraud and how to identify risk of material misstatement due to fraud.
• Recognize and explain appropriate responses to identified fraud risk.
• Identify and discuss the requirements related to fraud and noncompliance in various generally accepted auditing standards.

Last updated/reviewed: March 28, 2024