All 18 Fraud & Error Responsibilities questions
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Auditing & Assurance › Fraud & Error Responsibilities

What should the auditor do if fraud is suspected or identified during the audit?

Intermediate

Answer

Evaluate the implications for the audit (reliability of representations and evidence, reassess risks), perform additional procedures, and communicate on a timely basis to the appropriate level of management and those charged with governance (and, if it involves senior management, directly to governance). Consider legal/regulatory reporting duties, and whether to withdraw. Document thoroughly.
Real-world example On finding evidence of manipulated revenue, the auditor extends testing, informs the audit committee, and reassesses management's integrity.

Common follow-ups: Who does the auditor report suspected fraud to? | How does identified fraud affect other evidence?

Audit Report & Opinions Ethics & Independence Fraud & Error Responsibilities
All 18 Fraud & Error Responsibilities questions