ASSESSING AND RESPONDING TO FRAUD RISKS
Define fraud and distinguish between fraudulent financial reporting and misappropriation of assets.
Describe the fraud triangle and identify conditions for fraud.
Understand the auditor’s responsibility for assessing the risk of fraud and detecting material misstatements due to fraud.
Identify corporate governance and other control environment factors that reduce fraud risks.
Develop responses to identified fraud risks.
Recognize specific fraud risk areas and develop procedures to detect fraud.
Understand interview techniques and other activities after fraud is suspected.
Describe information about the fraud risk assessment that must be documented in the working paper
