L10 -FRUAD

Question 1

Fraud risk happens

Answer 1

1. incentive/ pressure
2. opportunity
3. attitude/ rationalism

Question 2

Fraud defo

Answer 2

international act among those involved TCWG, invloving the use of unseeing decption to obtain an unjust or illegal advance

Question 3

example of fraude

Answer 3

miss appropriation of assest
ommission of effects on transaction

Question 4

Fraud Prevention

Answer 4

reduce opps

Question 5

fraud dectection

Answer 5

caught and punished

Question 6

Fraud important distinguishes

Answer 6

1. misstatement in fs come from fraud or error
2. fraud intentional, involves deception
3. comes from fs

Question 7

Auditors repons to fraud

Answer 7

getting reasonable assurance that the fs are free from material misstatements caused by fraud or error

respond appropriately to fraud or suspected during audit

Question 8

why might the auditor not find fraud when it is present

Answer 8

collusion
sophisiticated

Question 9

ISA 240- AUDITOR REQUIRE

Answer 9

maintain profess scept
undertake risk assement- not biased
make sure docu/ record authenitc
incosistency shall be investigated

Question 10

conditions for fraud

Answer 10

weakenss in systems
problem in obtaining audit evidence

Question 11

Fraud prevention

Answer 11

train well
staff paid right

Question 12

suspicion of fraud

Answer 12

non- directors
* refer to management
* auditor -assess impact on other work

directors
* report to audit committe