ISA 240

INTERNATIONAL
STANDARD ON

AUDIT 240 (ISA 240)

OBJECTIVE

▪ identify and assess the risks of material
misstatement of the financial
statements due to fraud

▪ obtain sufficient appropriate audit
evidence regarding the assessed risks of

material misstatement due to fraud

▪ respond appropriately to fraud or
suspected fraud identified during the

audit

EVALUATION OF AUDIT
EVIDENCE

Evaluate the result of analytical procedure
that are performed at the end of audit
for consistency with assessed risk

Evaluate identified misstatement weather
material or not, if its indicative of fraud or

not

if unable to conclude whether, the financial
statements are materially misstated as a
result of fraud the auditor shall evaluate
the implications for the audit

DOCUMENTATION

Discussion among team
and its significant
decision

Result of procedures The identified and assessed risks
of material misstatement due
to fraud at the financial
statement level and at the
assertion level

Communications with Overall response to
client assessed risk