NOTE: No updates or changes were made to the 2021 version of this course. If you completed the course in 2019, please be advised the 2021 course material has not changed. If you have any questions, please contact pdevents@cpaontario.ca

Formerly Titled: “Audit – Risk Related to Fraud (CAS 240)”

An auditor has responsibilities relating to fraud in the context of an audit. The requirements of CAS are designed to assist the auditor in identifying and assessing the risk of material misstatement due to fraud and in designing procedures to respond to and detect such misstatements.

Misstatements in the financial statements can arise from fraud or error. The distinguishing factor between fraud and error is whether the underlying action that results in the misstatement is intentional or unintentional. As fraud is intentional and involves schemes designed to hide misstatement, the risk of not detecting a material misstatement resulting from fraud is higher than the risk of not detecting one resulting from error.

Participants will identify the auditor’s responsibilities related to fraud and apply the standards when designing and performing procedures for audit engagements.


The objectives of this course are to increase the understanding of help practitioners outline fraud responsibilities in the context of an audit and to help the auditor apply the standards in their assurance engagements in a meet the above objectives in a practical and efficient manner.

By the end of the course, participants will be able to:

  • Recognize fraud risk factors
  • Identify and assess the risk of material misstatement of the financial statements due to fraud (Risk Assessment Procedures)
  • Design appropriate audit procedures to address the risk of fraud
  • Perform required required procedures including journal entry testing
  • Implement unpredictability procedures into the engagement
  • Assess the results of procedures performed
  • Respond appropriately to fraud or suspected fraud identified during the audit


  • Overview of CAS 240 and its related requirements
  • Review of key characteristics of fraud
  • Performing risk assessment procedures
  • Through discussion and examples, design audit procedures to address the risk of fraud including reviewing of journal entry testing requirements and building unpredictability into audit procedures
  • Evaluate audit evidence obtained and assess impact on planned audit procedures including developing additional procedures, if required and the audit report
  • Assess the impact on the audit report
  • Overview implement of documentation and communication requirements into the engagements files


Practitioners in public practice who want to improve their ability to identify and assess the risk of fraud as well as who want to strengthen the work performed and documented in the assurance files in order to help them meet their responsibilities related to fraud in an efficient and effective manner.