Читать книгу Wiley Practitioner's Guide to GAAS 2020 - Joanne M. Flood - Страница 116

Any Fraud Involving Senior Management for Non-SEC Clients

Auditor should:

 Consider the implications for other aspects of the audit.

 Reevaluate the assessment of the risk of fraud.

 Discuss the matter and the approach to further investigation with the appropriate level of management.4

 Obtain additional evidentiary matter, including suggesting that the client consult with legal counsel.

 Consider whether any risk factors identified represent reportable conditions (Section 325).

 Consider withdrawing from the engagement and communicating the reasons to those charged with governance.

 Report the fraud to the audit committee or, in a small business, to the owner-manager.NOTE: If the perpetrator controls the audit committee or board of directors, go directly to client’s legal counsel. If the perpetrator is a general partner acting against the interests of the limited partners, obtain legal advice and consider communicating to the limited partners. If the perpetrator is the owner-manager of a small business, the auditor has little choice but to communicate with the perpetrator and has no obvious course of action but to withdraw. However, first the auditor should consult with his or her legal counsel.

 Insist that the financial statements be revised and, if they are not, express a qualified or adverse opinion (if precluded from obtaining needed evidence, disclaim an opinion or withdraw).