PSA-240-Rev-2005 - PSA 240 (Revised 2005) Auditing...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
PSA 240 (Revised 2005) Philippine Standard on Auditing 240 (Revised 2005) THE AUDITOR’S RESPONSIBILITY TO CONSIDER FRAUD IN AN AUDIT OF FINANCIAL STATEMENTS Conforming Amendments PSA 260, Communication of Audit Matters With Those Charged With Governance PSA 320, Audit Materiality PSA 580, Management Representations Auditing Standards and Practices Council
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
PSA 240 (Revised 2005) PHILIPPINE STANDARD ON AUDITING 240 (REVISED 2005) THE AUDITOR’S RESPONSIBILITY TO CONSIDER FRAUD IN AN AUDIT OF FINANCIAL STATEMENTS (Effective for audits of financial statements for periods beginning on or after June 15, 2006) * CONTENTS Paragraphs Introduction ……………………………………………………………………. . 1-3 Characteristics of Fraud ………………………………………………………… 4-12 Responsibilities of Those Charged With Governance and of Management ……………………………………………………………………. 13-16 Inherent Limitations of an Audit in the Context of Fraud ……………………… 17-20 Responsibilities of the Auditor for Detecting Material Misstatement Due to Fraud ……………………………………………………………………. 21-22 Professional Skepticism ………………………………………………………… 23-26 Discussion Among the Engagement Team ……………………………………. .. 27-32 Risk Assessment Procedures …………………………………………………… 33-56 Identification and Assessment of the Risks of Material Misstatement Due to Fraud ……………………………………………………………………. 57-60 Responses to the Risks of Material Misstatement Due to Fraud ………………. . 61-82 * This PSA gave rise to amendments to PSA 260, “Communication of Audit Matters With Those Charged With Governance,” PSA 320, “Audit Materiality” and PSA 580, Management Representations.” These amendments are attached to this PSA. At international level, the amendments are reflected in the 2005 edition of the Handbook of International Auditing, Assurance, and Ethics Pronouncements. PSA 240 (revised), “The Auditor’s Responsibility to Consider Fraud and Error in an Audit of Financial Statements,” approved by the Auditing Standards and Practices Council in 2003 will be withdrawn in June 2006 when PSA 240 (Revised 2005) becomes effective.
Background image of page 2
PSA 240 (Revised 2005) - 2 - Evaluation of Audit Evidence …………………………………………………. . 83-89 Management Representations …………………………………………………. . 90-92 Communications With Management and Those Charged With Governance ……………………………………………………………………. . 93-101 Communications to Regulatory and Enforcement Authorities ………………… 102 Auditor Unable to Continue the Engagement …………………………………. 103-106 Documentation ………………………………………………………………… 107-111
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 02/26/2011 for the course ACCOUNTING 310 taught by Professor Cruz during the Spring '11 term at Xavier - Ateneo de Cagayan.

Page1 / 54

PSA-240-Rev-2005 - PSA 240 (Revised 2005) Auditing...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online