A5 · Fraud brainstorming & management override

Document discussion participants, date, susceptibility to fraud and professional skepticism.

Inquire of management, governance, internal audit and others regarding actual, suspected or alleged fraud.

Evaluate incentives, pressures, opportunities and rationalization; identify assertion-level fraud risks.

Evaluate the presumed revenue recognition fraud risk and document the basis for any rebuttal.

Design and document journal-entry testing, including population completeness, selection rationale and results.

Evaluate accounting estimates for bias, including retrospective review; examine unusual significant transactions.

Link fraud risks to responsive procedures; document communications and final conclusions.