ASA 240 - The Auditor’s Responsibility to Consider Fraud in an Audit of a Financial Report - April 2006
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Documentation
116 The documentation of the auditor’s understanding of the entity and its environment and the auditor’s assessment of the risks of material misstatement required by ASA 315 shall include:
(a) the significant decisions reached during the discussion among the engagement team regarding the susceptibility of the entity’s financial report to material misstatement due to fraud; and
(b) the identified and assessed risks of material misstatement due to fraud at the financial report level and at the assertion level.
117 The documentation of the auditor’s responses to the assessed risks of material misstatement required by ASA 330 shall include:
(a) the overall responses to the assessed risks of material misstatements due to fraud at the financial report level and the nature, timing and extent of audit procedures, and the linkage of those procedures with the assessed risks of material misstatement due to fraud at the assertion level; and
(b) the results of the audit procedures, including those designed to address the risk of management override of controls.
118 The auditor shall document communications about fraud made to management, those charged with governance, regulators and others.
119 When the auditor has concluded that the presumption that there is a risk of material misstatement due to fraud related to revenue recognition is not applicable in the circumstances of the engagement, the auditor shall document the reasons for that conclusion.
120 The extent to which these matters are documented is for the auditor to determine using professional judgement.