Академический Документы
Профессиональный Документы
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Responsibility
Responsibilities
Error
Unintentional misstatements
the financial statements
in
Error
an amount or
Omission of
a disclosure
such as:
Mathematical or clerical mistakes in
the underlying records and accounting
data
An incorrect accounting estimate
arising
from
oversight
or
misinterpretation of facts
Mistake
in
the
application
of
accounting policies
Fraud
Types of Fraud
1. Fraudulent
Financial
(Management Fraud)
reporting
Responsibility of
Management and those
Charged with
Governance
Management
Auditors
Responsibility
Planning Phase
Testing Phase
Testing Phase
Completion Phase
should
5. The auditor
obtain a written
representation from the clients management
that:
It acknowledges its responsibility for the
implementation and operations of accounting
and internal control systems that are designed
to prevent and detect fraud and error;
It believes the effects of those uncorrected
financial statement misstatements aggregated
by the auditor during the audit are immaterial,
both individually and in the aggregate, to the
financial statements taken as a whole.
Completion Phase
Effect on the
Auditors
Report
1. Managements
Characteristics
and
Influence over the Control Environment
2. Industry Conditions
3. Operating Characteristics and Financial
Stability
Managements
Characteristics and
Influence over the Control
Environment
Industry
Conditions
Operating
Characteristics and
Financial Stability
1. Susceptibility
of
Misappropriation
2. Controls
Assets
to
Susceptibility of
Assets to
Misappropriation
Controls
Noncompliance with
Laws and Regulations
Noncompliance with
Laws and
Regulations
Includes transactions entered into by, or in the
name of, the entity or on its behalf by its
management or employees, such as:
Tax evasion
Violation of environmental protection laws
Inside trading of securities
Managements
Responsibility
Auditors
Responsibility
Planning Phase
Planning Phase
Testing Phase
Completion
Phase
Effect on the
Auditors
Report