1. Relevant ISAs
1.1. ► ISA 240 – The auditor’s responsibilities relating to fraudin an audit of financial statements
1.2. ► ISA 300 – Planning an audit of financial statements
1.3. ► ISA 330 – The auditor’s responses to assessed risks
1.4. ► ISA 500 – Audit evidence
2. Risk of material misstatement – RMM
2.1. At the financial statement level
2.1.1. Relates to the financial statements as a whole
2.2. At the assertion level
2.2.1. Assessed risks at the assertion level relate to particular account balances, classes of transactions, and disclosures.
3. Overall Responses to Risks at the Financial Statement Level
3.1. Engagement Management
3.1.1. Professional skepticism
3.1.2. More experienced staff
3.1.3. Ongoing supervision
3.1.4. Ask internal audit
3.2. Incorporate Unpredictability in Selection of Further Audit Procedures
3.2.1. The selection of the nature, timing, and extent of further audit procedures to be performed
3.2.2. Abordar los riesgos de fraude
3.3. Revise the Planned Audit Procedures
3.3.1. Make changes to the nature, timing, or extent of audit procedures.
3.4. Changes in the Audit Approach
3.4.1. Consider the understanding obtained of the control environment.
3.4.1.1. If the C.E. is effective, the auditor may have more confidence in internal control and the reliability of audit evidence
3.5. Review Accounting Policies being Used
3.5.1. Assess whether accounting applications can be used for fraud
4. AT THE ASSERTION LEVEL
4.1. The auditor’s assessment of identified risks at the assertion level provides the starting point for:
4.1.1. Considering the appropriate audit approach
4.1.1.1. Test of controls
4.1.1.2. Substantive procedures
4.1.2. Designing and performing further audit procedures.
4.1.2.1. Nature of the Assertion being addressed
4.1.2.2. Reason for the assessed risks
4.1.2.3. Assessed Level of Risk
4.1.2.4. Sources of information used
4.1.2.5. Potential for Dual-Purpose test
5. Management Override
5.1. Refers to the ability of management or government to alter accounting records and financial statements by overriding controls.
5.1.1. Journal Entries
5.1.2. Estimates
5.1.3. Significant Transactions
5.1.4. Revenue Recognition
5.1.5. Financial Statement Disclosures