Fraud: Do we have to search it?

As an external auditor, do we have to or oblige to find any misstatement caused by fraud or any fraud attempt that may exist in the company we audit?

According to Indonesian Auditing Standard (SPAP), auditor must aware any risk of material misstatement due to fraud. The word “material” saves us. It shows that we don’t have to search for fraud at any amount, and limit to material amount only. One of the procedures we have to do is having a discussion at planning stage with management relating to any fraud risk that might have occurred, and document it.

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This entry was posted on May 28, 2010 at 10:02 am and is filed under Audit . You can follow any responses to this entry through the RSS 2.0 feed You can leave a response, or trackback from your own site.

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