ISFR
IMPLEMENTING SAS NO. 99: FINDING FRAUDULENT
FINANCIAL REPORTING AND ASSET-MISAPPROPRIATION SCHEMES
SAS No. 99 raises the bar that accountants have to meet as they assess the risks of material misstatements in financial statements arising from fraudulent financial reporting and asset-misappropriation schemes. This course describes many of those schemes. It also describes how SAS No. 99 dramatically changes how auditors must plan and perform an audit. It helps course participants to improve their ability to identify fraud risks, respond appropriately to them, and evaluate the results of their tests. In short, people who take this course will be better able to detect material misstatements due to fraud and respond appropriately.
Major topics include:
- Description and characteristics of fraud
- Financial-statement audits vs. fraud audits
- Types of material misstatements
- Nature of and types of fraud risk factors
- Pressures/incentives risk factors
- Opportunity risk factors
- Attitude/rationalization risk factors
- Fraudulent-financial-reporting risk factors
- Misappropriation-of-assets risk factors
- Holding audit-team discussions about fraud
- Obtaining information about fraud and fraud risks
- A new emphasis on professional skepticism
- Expanding auditor inquiries: management, audit committee, and internal audit
- Identifying and assessing fraud risks
- Responding to fraud-assessment results
- Overall responses to identified risks
- Nature, timing, and extent of audit-procedures responses:
- Misappropriation-of-assets and fraudulent-financial-statement risk responses; and
- Responses to specific types of fraud (revenue recognition, inventory, disclosure failures, concealed liabilities and losses, management override of controls, and management estimates)
- Evaluating audit tests
- Communicating results
- Documenting audit work
- Studying fraud schemes
- Avoiding legal liability during audits
Designed for: Anyone who conducts financial statement audits, who has their financial statements audited, or wants to know more about SAS No. 99, the new fraud standard.
Level of knowledge: Basic
Field of study: Auditing
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