All 18 Fraud & Error Responsibilities questions
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What are fraud risk factors and give examples? What is professional skepticism's role in detecting fraud? What is misappropriation of assets and what controls mitigate it? What is the fraud triangle? Why is revenue recognition presumed to be a fraud risk? What should the auditor do if fraud is suspected or identified during the audit? What is the difference between the auditor's and management's anti-fraud responsibilities? What is the significance of the team's fraud discussion (brainstorming)? Does an unmodified audit opinion guarantee there is no fraud? How does the auditor address the risk of management override of controls?
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Auditing & Assurance › Fraud & Error Responsibilities

What is the auditor's responsibility for fraud under ISA 240?

Intermediate

Answer

ISA 240 requires the auditor to maintain professional skepticism, discuss fraud susceptibility within the team, perform risk assessment procedures to identify fraud risks, presume a fraud risk in revenue recognition, respond with appropriate procedures, specifically address management override (test journal entries, review estimates for bias, evaluate unusual significant transactions), and obtain written representations.
Real-world example Following ISA 240, the team holds a fraud brainstorming session and designs journal-entry testing to counter override risk.

Common follow-ups: What is presumed under ISA 240 about revenue? | What procedures address override?

ISA Standards Audit Evidence & Procedures Fraud & Error Responsibilities
All 18 Fraud & Error Responsibilities questions