Fraud. Management’s Responsibility Auditor’s Consideration. Management’s Responsibility. To design and implement programs and controls that prevent, deter and/or detect FRAUD. Auditor’s Consideration. When and how does the auditor look for fraud indicators?
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To design and implement
programs and controls
that prevent, deter and/or detectFRAUD
When and how does the auditor
look for fraud indicators?
Statement on Auditing Standards Number 99
(Codification AU §316)
(Guidelines for Management)
(Note: the auditor should plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement – intentional or unintentional.)
Fraudulent reporting may result from:
Misappropriation of assets (theft or defalcation) may involve a theft resulting in non-GAAP, such as embezzling receipts, stealing assets, causing payment for goods or services not received
This section is only concerned with those misappropriations that cause the FS not to be fairly presented, in all material resects, in conformity with GAAP
Conditions usually present when fraud occurs:
Keys for school personnel and auditors:
Considering the Potential for Fraud
Designing and Implementing
Programs and Controls