Page 10 - PowerPoint Presentation
P. 10
IMPORTANT ELEMENTS OF THE AUDIT PROCESS
FRAUD RISK FACTORS
• Per ISA 240, they are divided into:
• Risk factors relating to misstatements resulting from
fraudulent financial reporting.
• Risk factors relating to misstatements resulting from
misappropriation of assets.
• Refer to ISA 240 for a more comprehensive list of
fraud risk factors and other mattes relating to
fraud.
• Where fraud is perpetrated, a number of risk
factors are likely to be present.
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