APPENDIX 2Audit Program for the Identification of Fraud Risks

This work program has been elaborated from:

REA-REGA (2015): Technical teacher for the practical application of the ISA 240, Register of Economists Auditors REA-REGA, November.

ICJCE (2015): Planning tools: “ISA-ES 240,” Instituto de Censores Jurados de Cuentas de España (Institute of Chartered Accountants of Spain), April.

A2.1 OBJECTIVE

The objective is planning the identification of risks in the scope of the auditor's responsibilities regarding fraud in the audit of annual accounts, in the sense of obtaining reasonable certainty that the annual accounts considered as a whole are free of material inaccuracies due to fraud (intentional error) or error.

In this sense, the auditor's goals are to:

  • Identify and assess the risks of material error in the annual accounts due to fraud.
    • Obtain sufficient and adequate evidence of audit regarding the assessed risks of material error due to fraud, by designing and implementing appropriate responses.
  • Respond adequately to the fraud or to the signs of fraud identified during the performance of the audit.
PROCEDURE OF IDENTIFICATION AND ASSESSMENT OF FRAUD RISK
Year X Following Year X Planning Year X-1
A) IN RELATION WITH CONDUCTS AND FACTS
Y/N/NP Y/N/NP Y/N/NP
  1. Are there precedents or suspicions that the entity has ever had any of the following circumstances?
  •  Manipulation, falsification, or alteration of accounting records or of the supporting documentation ...

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