Responsibility for Mitigating Fraud
No Issues Noted financial statements are free of material misstatement due to fraudulent financial reporting or misappropriation of assets Compliance with fraud standard (SAS 99) - Conversations with finance and operations personnel - Disaggregated analytics - Surprise audit procedures - Journal entry testing External Auditor: Evaluate management programs and controls to deter and detect fraud for identified risks Reasonable assurance that
Management: CFO: controls to deter and detect fraud General Counsel/Compliance: monitoring Audit Committee: Evaluate management identification of fraud risk Evaluate implementation of fraud controls Reinforce “tone at the top”
Financial Misconduct by Member(s) of Sr. Management of the Board
Fraudulent Financial Reporting
Costs & Expenses Avoided by Fraud
Misappropriation of Assets
Expenditures & Liabilities for an Improper Purpose
Revenue & Assets Obtained by Fraud
25
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