CAS 240 The Auditor Resp re Fraud

CAS 240 The Auditor Resp re Fraud - • matters that may...

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CAS 240 The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements Existing Handbook Section Replaced The CAS replaces Section 5135, The Auditor’s Responsibility to Consider Fraud. Difference (S) in scope None. New concept (s) None. Change (s) to requirement (s) Requirements in Section 5135 state that the auditor’s communications with those charged with governance should include fraud (whether caused by management or other employees) that results, or may result, in a non-trivial misstatement of the financial statements. In CAS 240, such communication relates to material misstatements. Also, in Section 5135, the auditor is required to communicate to those charged with governance: • questions regarding the honesty and integrity of management; and
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Unformatted text preview: • matters that may cause future financial statements to be materially misstated. These matters are not specifically addressed in requirements in CAS 240. Under Section 5135, the auditor is also required to communicate with a successor auditor when fraud or suspected fraud was a factor in the existing auditor’s withdrawal from the engagement. This matter is not addressed in CAS 240. Other matter (s) CAS 240 requires the auditor to communicate with those charged with governance any other matters related to fraud that are, in the auditor’s judgment, relevant to their responsibilities. In existing Canadian standards, this requirement is contained in Section 5751, and was therefore not repeated in Section 5135....
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This note was uploaded on 03/24/2012 for the course ACCOUNTING IAF taught by Professor Ganesh during the Spring '12 term at Seneca.

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