Fraud We need a memo (GA-6) addressing the potential for fraud (both misappropriation of assets and fraudulent financial reporting) for Apollo Shoes. This audit documentation is necessary to document that we are following the professional literature concerning fraud consideration. 

Some things you might want to include in your memo: 

• Have you noticed any “red flags” in either the minutes or your analytic procedures so far?

• Address fraud risk in general terms: types of risk (Remember that improper revenue recognition is always a “red flag.”), significance of risk, likelihood of risk (what is the probability of fraud?), pervasiveness of risk (is fraud risk centralized to one function or individual or is it throughout the organization?) 

• How might a fraud be perpetrated and concealed in the entity 

• Suggest ways that we might alter our audit approach to address the potential for fraud, such as assignment of personnel, predictability of auditing procedures, and examination of journal entries and other adjustments We will need to get together with the entire audit team (you, me, and Timothy) for a “brainstorming” session next week. 

Date: 16 JAN 2018 1:15:49 +0000 From: "Darlene Wardlaw" Subject: Memo on Consideration of Potential

Answer rating: 100% (QA)

MEMORANDUM To Darlene Wardlaw From Your Name Subject Potential Fraud Consideration for Apollo Shoes Date Insert date As per your request I have prepar... View the full answer