This problem requires you to access CPA Canada Assurance Handbook and to review CAS 240The auditors responsibilities
Question:
This problem requires you to access CPA Canada Assurance Handbook and to review CAS 240—The auditor’s responsibilities relating to fraud in an audit of financial statements.
REQUIRED
a. You have determined that there is a fraud risk related to the existence and accuracy of inventory. Review the guidance in CAS 240 to provide examples of auditor responses involving changes to the nature, timing, and extent of audit procedures related to this assessed fraud risk for inventory.
b. What does CAS 240 say about how the auditor should assess risk related to revenue recognition?
c. What examples of auditor responses to fraud risk related to revenue recognition are provided in CAS 240?
Step by Step Answer:
a Appendix A of CAS 240 provides several examples of risk response with regards to existence and accuracy assertions Examining the entitys inventory records to identify locations or items that require ...View the full answer
Auditing The Art and Science of Assurance Engagements
ISBN: 978-0134613116
14th Canadian edition
Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Joanne C. Jones
