Required Communications (cont.)
No Issues Noted • Comply with GAAS AU-C 240, “Consideration of Fraud in a Financial Statement Audit” ; • Approach all audits with an understanding that fraud could occur in any entity, at any time, by anyone; and • Perform mandatory procedures required by GAAS and our firm policies . Examples of Procedures Performed • Discuss thoughts and ideas in areas where the financial statements might be susceptible to material misstatement due to fraud; No Issues Noted Our Responsibility Related to Fraud • Plan and perform the audit to obtain reasonable assurance that there is no material misstatement caused by error or fraud;
• Understand pressures on the financial statement results; • Understand the tone and culture of the organization; • Look for unusual or unexpected transactions, relationships, or procedures; • Discussions with individuals outside of finance; • Evaluate key processes and controls; and • Consider information gathered throughout the audit.
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