ASA 240 - The Auditor’s Responsibilities Relating to Fraud in an Audit of a Financial Report - October 2009
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This Auditing Standard reproduces substantial parts of the corresponding International Standard on Auditing issued by the International Auditing and Assurance Standards Board (IAASB) and published by the International Federation of Accountants (IFAC), in the manner described in the statement on Conformity with International Standards on Auditing. The AUASB acknowledges that IFAC is the owner of copyright in the International Standard on Auditing incorporated in this Auditing Standard throughout the world.
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ISSN 1833‑4393
Part COMPILATION DETAILS - ASA 240 - The Auditor’s Responsibilities Relating to Fraud in an Audit of a Financial Report - October 2009 - COMPILATION DETAILS | Zoe
CONTENTS
COMPILATION DETAILS
AUTHORITY STATEMENT
CONFORMITY WITH INTERNATIONAL STANDARDS ON AUDITING
Characteristics of Fraud....................................................A1-A5
Responsibility for the Prevention and Detection of Fraud............................A6-A7
Professional Scepticism...................................................A8-A10
Discussion among the Engagement Team......................................A11-A12
Risk Assessment Procedures and Related Activities..............................A13-A28
Identification and Assessment of the Risks of Material Misstatement Due to Fraud........A29-A33
Responses to the Assessed Risks of Material Misstatement Due to Fraud...............A34-A49
Evaluation of Audit Evidence..............................................A50-A54
Auditor Unable to Continue the Engagement...................................A55-A58
Written Representations..................................................A59-A60
Communications to Management and with Those Charged With Governance............A61-A66
Reporting Fraud to an Appropriate Authority outside the Entity......................A67-A69
Appendix 1: Examples of Fraud Risk Factors
Appendix 2: Examples of Possible Audit Procedures to Address the Assessed Risks of Material Misstatement Due to Fraud
Appendix 3: Examples of Circumstances that Indicate the Possibility of Fraud
COMPILATION DETAILS
Auditing Standard ASA 240 The Auditor's Responsibilities Relating to Fraud in an Audit of a Financial Report (as Amended)
This compilation takes into account amendments made up to and including 27 April 2022 and was prepared on 2 March 2023 by the Auditing and Assurance Standards Board (AUASB).
This compilation is not a separate Auditing Standard made by the AUASB. Instead, it is a representation of ASA 240 (October 2009) as amended by other Auditing Standards which are listed in the Table below.
Table of Standards
Standard
Date made
Operative Date
ASA 240 [A]
27 October 2009
Financial reporting periods commencing on or after 1 January 2010
ASA 2011‑1 [B]
27 June 2011
Financial reporting periods commencing on or after 1 July 2011
ASA 2013‑2 [C]
11 November 2013
Financial reporting periods commencing on or after 1 January 2014
ASA 2015‑1 [D]
1 December 2015
Financial reporting periods ending on or after 15 December 2016
ASA 2017-2 [E]
30 May 2017
Financial reporting periods commencing on or after 1 January 2018
ASA 2018-1 [F]
5 December 2018
Financial reporting periods commencing on or after 15 December 2019, with early adoption permitted[*]
ASA 2020-2 [G]
30 June 2020
Financial reporting periods ending on or after 15 July 2020
ASA 2020-1 [H]
3 March 2020
Financial reporting periods commencing on or after 15 December 2021[#]
ASA 2021-5 [I]
5 November 2021
Financial reporting periods commencing on or after 15 December 2021
ASA 2022-1 [J]
27 April 2022
Financial reporting periods commencing on or after 15 December 2023
Legislation History
Standard
Registration Number
Registration Date
Commencement Date
ASA 240
F2009L04075
11 November 2009
12 November 2009
ASA 2011‑1
F2011L01379
30 June 2011
1 July 2011
ASA 2013-2
F2013L01939
11 November 2013
12 November 2013
ASA 2015-1
F2015L02032
16 December 2015
17 December 2015
ASA 2017-2
F2017L01179
13 September 2017
14 September 2017
ASA 2018-1
F2019L00016
3 January 2019
4 January 2019
ASA 2020-2
F2020L00885
7 July 2020
8 July 2020
ASA 2020-1
F2020L00252
13 March 2020
14 December 2021
ASA 2021-5
F2021L01525
8 November 2021
14 December 2021
ASA 2022-1
F2022L00712
19 May 2022
14 December 2023
Table of Amendments
Paragraph affected
How affected
By … [paragraph]
A30
Amended
ASA 2011‑1 [23]
19
Amended
ASA 2013‑2 [39]
Heading above paragraph A18
Amended
ASA 2013‑2 [40]
A18
Amended
ASA 2013‑2 [41]
A18Footnote 15
Amended
ASA 2013‑2 [42]
Appendix 1
Amended
ASA 2013‑2 [43]
A4
Amended
ASA 2015‑1 [48]
A11
Amended
ASA 2015‑1 [49]
A65.1
Amended
ASA 2015‑1 [50]
5Footnote 3
Amended
ASA 2017-2 [18]
6Footnote 4
Amended
ASA 2017-2 [19]
9
Addition
ASA 2017-2 [20]
13
Amended
ASA 2017-2 [21]
41
Amended
ASA 2017-2 [22]
42
Amended
ASA 2017-2 [23]
43
Amended
ASA 2017-2 [24]
Heading above paragraph 44
Amended
ASA 2017-2 [25]
44
Amended
ASA 2017-2 [26]
Headings above paragraph A6
Addition
ASA 2017-2 [27]
A6
Addition
ASA 2017-2 [28]
A10Footnote 16
Amended
ASA 2017-2 [29]
Heading above paragraph A61
Amended
ASA 2017-2 [30]
A61
Addition
ASA 2017-2 [31]
Heading above paragraph A67
Amended
ASA 2017-2 [32]
A67
Amended
ASA 2017-2 [33]
A68
Amended
ASA 2017-2 [34]
A48
Amended
ASA 2018-1 [14]
13Footnote 5
Amended
ASA 2018-1 [15]
A48Footnote 20
Amended
ASA 2018-1 [16]
Aus A67.1Footnote *
Amended
ASA 2018-1 [17]
A6
Amended
ASA 2020-2 [27]
A6 Footnote 15
Amended
ASA 2020-2 [28]
7
Amended
ASA 2020-1 [35]
16Footnote 6
Amended
ASA 2020-1 [36]
17
Amended
ASA 2020-1 [37]
17Footnote 7
Deleted
ASA 2020-1 [37]
21
Amended
ASA 2020-1 [38]
26Footnote 9
Amended
ASA 2020-1 [39]
28
Amended
ASA 2020-1 [40]
28Footnote 10
Addition
ASA 2020-1 [40]
Renumbering of footnotes
Amended
ASA 2020-1 [41]
45 and Footnote 14
Amended
ASA 2020-1 [42]
A8
Amended
ASA 2020-1 [43]
A19Footnote 18
Amended
ASA 2020-1 [44]
A20
Amended
ASA 2020-1 [45]
A21
Amended
ASA 2020-1 [46]
A23
Amended
ASA 2020-1 [47]
A26
Amended
ASA 2020-1 [48]
A26Footnotes 20 and 21
Addition
ASA 2020-1 [48]
A32Footnote 22
Amended
ASA 2020-1 [49]
A33
Amended
ASA 2020-1 [50]
A43Footnote 23
Addition
ASA 2020-1 [51]
Renumbering of footnotes
Amended
ASA 2020-1 [52]
A44
Amended
ASA 2020-1 [53]
Appendix 1
Amended
ASA 2020-1 [54]
Appendix 2
Amended
ASA 2020-1 [55]
17
Amended
ASA 2021-5 [18]
A6
Amended
ASA 2022-1 [21]
AUTHORITY STATEMENT
Auditing Standard ASA 240 The Auditor's Responsibilities Relating to Fraud in an Audit of a Financial Report (as amended to 27 April 2022) is set out in paragraphs Aus 0.1 to A69 and Appendices 1 to 3.
This Auditing Standard is to be read in conjunction with ASA 101 Preamble to AUASB Standards, which sets out how AUASB Standards are to be understood, interpreted and applied. This Auditing Standard is to be read also in conjunction with ASA 200 Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Australian Auditing Standards.
Conformity with International Standards on Auditing
This Auditing Standard conforms with International Standard on Auditing ISA 240 The Auditor's Responsibilities Relating to Fraud in an Audit of a Financial Report issued by the International Auditing and Assurance Standards Board (IAASB), an independent standard‑setting board of the International Federation of Accountants (IFAC).
Paragraphs that have been added to this Auditing Standard (and do not appear in the text of the equivalent ISA) are identified with the prefix “Aus”.
The following application and other explanatory material is additional to ASA 240:
For an audit engagement under the Corporations Act 2001 (the Act), the possibility of withdrawing from the engagement or resigning from the appointment as an auditor can only be made in accordance with the provisions of the Act, including in certain circumstances, obtaining consent to resign from the Australian Securities and Investments Commission (ASIC). (Ref: Para. Aus A57.1)
Legislation may require the auditor or a member of the audit team to maintain the confidentiality of information disclosed to the auditor, or a member of the audit team, by a person regarding contraventions or possible contraventions of the law. In such circumstances, the auditor or a member of the audit team may be prevented from communicating that information to management or those charged with governance in order to protect the identity of the person who has disclosed confidential information that alleges a breach of the law. In such circumstances, the auditor may consider obtaining legal advice to assist in determining the appropriate course of action and may need to consider the implications for the audit engagement. (Ref: Para. Aus A62.1)
An auditor is required by the Corporations Act 2001 to notify the Australian Securities and Investments Commission (ASIC) if the auditor is aware of certain circumstances. (Ref: Para. Aus A67.1)
This Auditing Standard incorporates terminology and definitions used in Australia.
The equivalent requirements and related application and other explanatory material included in ISA 240 in respect of “relevant ethical requirements”, have been included in Auditing Standard, ASA 102 Compliance with Ethical Requirements when Performing Audits, Reviews and Other Assurance Engagements. There is no international equivalent to ASA 102.
Compliance with this Auditing Standard enables compliance with ISA 240.