Audits - Risk Related to Fraud (CAS 240)
Formerly Titled: Audit Engagements - Risk Related to Fraud (CAS 240)
Overview:
Misstatements in financial statements can arise from fraud or error, the distinguishing factor being fraud is intentional while error is unintentional. The requirements of CAS 240 are designed to assist the auditor in identifying and assessing the risk of material misstatement due to fraud and in designing procedures to detect and respond to such misstatements.
A strong understanding of fraud risk factors is a good starting point in identifying the risk of fraud. This course will help practitioners address their fraud responsibilities in the context of an audit by helping practitioners identify and assess the risk of fraud as well as design and perform required risk responses such as journal entry testing and incorporating unpredictability procedures into the audit. In addition, the course will help the practitioner determine the next steps and assess the impact on the audit opinion when fraud is discovered or suspected including a better understanding of communications and documentation requirements. Finally, participants will learn how to maintain an attitude of professional skepticism throughout the audit which will help them to perform a quality audit and reduce their risk in an efficient and effective manner.
Course Content:
In this course, you will gain knowledge about the following topics:
- Overview of CAS 240 and related requirements
- Review of the key characteristics of fraud
- Examination of required risk assessment procedures
- Designing and performing audit procedures to address the risk of fraud
- Evaluating audit evidence obtained and assessing the impact on planned audit procedures
- Assessing the impact on the audit report and determining where modifications may be required
- Documentation and communication requirements
Learning Objectives:
Upon completing this course, you should be able to:
- Recognize fraud risk factors
- Identify and assess the risk of material misstatement of the financial statements due to fraud
- Maintain an attitude of professional skepticism
- Design appropriate audit procedures to address the risk of fraud
- Perform required procedures including journal entry testing
- Implement unpredictability procedures into the engagement
- Assess the results of procedures performed
- Respond to fraud or suspected fraud identified during the audit
- Determine the impact on the audit opinion
- Comprehend communication requirements
Who Will Benefit:
Practitioners in public practice who want to improve their ability to identify and assess the risk of fraud as well as who want to strengthen the work performed and documented in the audit files in order to help them meet their responsibilities related to fraud in an efficient and effective manner.