SA 240 define fraud as an intentional act by one or more individuals among management, those charged with governance, involving the use of deception to obtain an
unjust or illegal advantage
Answers
tandard on Auditing, (SA) 240, one of the most authoritative text deals with the auditor’s responsibilities relating to fraud in an audit of financial statements. With the flood of opportunities to open up for auditors to audit financial statements for the period ending 31st March 2020
SA 240 – Auditor’s responsibility in fraudulent Financial Statements: Basic tenets revisited
Standard on Auditing, (SA) 240, one of the most authoritative text deals with the auditor’s responsibilities relating to fraud in an audit of financial statements. With the flood of opportunities to open up for auditors to audit financial statements for the period ending 31st March 2020, it is time to review the instructions contained under this SA 240. This has become essential due to emerging frauds, known or unknown enlisted on the horizon. Yes, the auditor has to abide by these instructions in details. Recollection of suitable instructions would only add values to the nobility of audit reports who form the backbone of corporate world for investment.
Major text of SA 240, as enshrined, is enclosed: