Page 79 - AA Integrated Workbook STUDENT 2018-19
P. 79
Planning
2.2 Responsibilities in respect of fraud and error
Directors Auditors
Primary responsibility for the
prevention and detection of fraud
Implement an effective system of
internal control
Create a culture of honesty, ethical
behaviour, and active oversight by
those charged with governance
Consider the need for an internal
audit department to act as a
deterrent for fraud
Internal audit may be used to:
– Test the effectiveness of
internal controls at preventing
and detecting fraud and error
– Perform fraud investigations
– Perform surprise asset counts
to identify misappropriation
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