SA 240

SA 240: THE AUDITOR’S RESPONSIBILITY RELATED TO FRAUD IN AN AUDIT OF FINANCIAL STATEMENTS

1. SA 240: THE AUDITOR’S RESPONSIBILITY RELATED TO FRAUD IN AN AUDIT OF FINANCIAL STATEMENTS SHIVANI LAHOTI

2. OBJECTIVE SHIVANI LAHOTI

3. CHARACTERISTICS OF FRAUD The auditor is concerned with fraud that causes a material misstatement in the financial statements. Two types of intentional misstatements are relevant to the auditor: (a) Misstatements resulting from fraudulent financial reporting (b) Misstatements resulting from misappropriation of assets SHIVANI LAHOTI

4. RESPONSIBILITY FOR PREVENTION AND DETECTION OF FRAUD The primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management The auditor is responsible for obtaining reasonable assurance that the financial statements taken as a whole are free from material misstatement, whether caused by fraud or error. SHIVANI LAHOTI

5. REQUIREMENTS Professional Skepticism Discussion among Engagement Team Risk Assessment Procedures and Related Activities SHIVANI LAHOTI

6. RISK ASSESSMENT PROCEDURES SHIVANI LAHOTI

7. THANKYOU SHIVANI LAHOTI