Section Engagement Performance (Ref: Para. 24 an - Auditing Standard ASA 240 The Auditor's Responsibilities Relating to Fraud in an Audit of a Financial Report (October 2025) - Engagement Performance (Ref: Para. 24 and 29)

Engagement Performance (Ref: Para. 24 anEngagement Performance (Ref: Para. 24 and 29)

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Engagement Performance (Ref: Para. 24 and 29)

Depending on the nature and circumstances of the audit engagement, the engagement partner’s approach to direction, supervision and review may include increasing the extent and frequency of the engagement team discussions. It may be beneficial to hold additional engagement team discussions based on the occurrence of events or conditions that have impacted the entity, which may identify new, or provide additional information about existing, fraud risk factors (see Appendix 1 for examples of fraud risk factors).

Examples: Sudden changes in business activity or performance (e.g., decrease in operating cashflows of an entity arising from economic conditions resulting in increased pressure internally by management to meet publicly disclosed earnings targets). Unexpected changes in the senior management of the entity (e.g., the chief financial officer resigns, with no explanation given for the sudden departure, providing an opportunity for other employees in the treasury department to commit fraud given the lack of senior management oversight).