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Reporting requirements of ISA240 (redrafted) The auditors responsibilities relating to fraud in an a

This topic has 1 reply, 2 voices, and was last updated 15 years ago by MikeLittle.

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June 3, 2010 at 5:17 pm #44386
djb62
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With reference those charged with governance – if fraud is identified etc and if it results in a material misstatement, the auditor must report it to those charged with governance.
My question is why material misstatement, if the fraud does not result in a material misstatement can one infer that no report should be made those charged with governance?
June 5, 2010 at 11:45 am #62005
MikeLittle
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No, if it’s material, report to those charged with governance. If not material, report to executive management ( unless it’s they who are committing the fraud, in which case, report it to those charged with governance )
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