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 statement 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.

This course helps to clarify the requirements of CAS and the auditor’s responsibility relating to fraud and to assist the practitioner in meeting these responsibilities.

Participants who attend this course will be better able to understand the characteristics of fraud and their responsibilities related to fraud in an audit. Participants will also be better equipped to identify and assess the risk of material misstatement and respond appropriately to those risks. Finally, participants will better understand how to maintain an attitude of professional skepticism throughout the audit which will help them to perform a quality audit and reduce their risk.


The objectives of this course are to increase the understanding of fraud responsibilities in the context of an audit and to help the auditor meet the above objectives in a practical and efficient manner. Specifically the auditor will have a better of understanding of CAS requirements and how to meet them including:

  • Identifying and assessing the risk of material misstatement of the financial statements due to fraud
  • Obtaining sufficient appropriate audit evidence regarding the risk of material misstatement due to fraud through designing and implementing appropriate audit procedures
  • Responding appropriately to fraud or suspected fraud identified during the audit


  • Overview of CAS 240 and its related requirements
  • Review of key characteristics of fraud
  • 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 and the audit report
  • Overview of documentation and communication requirements


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 audit files in order to help them meet their responsibilities related to fraud.