SAS 99 - SAS 99: Consideration of Fraud in a Financial...

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SAS 99: Consideration of Fraud in a Financial Statement Audit
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Overall Requirement An audit should be planned and performed to obtain reasonable assurance about whether the financial statements are free of material misstatements, whether caused by error or fraud. An audit requires due professional care, which in turn requires that the auditor exercise professional skepticism.
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Causes of Misstatements Causes Errors Fraudulent Misappropriation Financial of Assets Reporting
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Two Types of Fraud Considered in an Audit Fraudulent financial reporting (“cooking the books”)--examples Falsification of accounting records Omissions of transactions Misappropriation of assets--examples: Theft of assets Fraudulent expenditures
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Professional Skepticism An attitude that includes a questioning mind and a critical assessment of audit evidence The engagement should be conducted recognizing possibility of material misstatement due to fraud An auditor should not be satisfied with less than persuasive evidence
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SAS 99 - SAS 99: Consideration of Fraud in a Financial...

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