In February 2024 the ISA 240 Fraud standard was proposed to be revised. An exposure draft was issued for public comment ending in June of 2024. Due consideration for fraud in any audit is non-negotiable. Therefore, knowing where your responsibility starts and stops is vital for success as an auditor.

The final version of the revised ISA 240 standard has not been announced as of late 2024 but usually becomes mandatory two financial years after issue, though early adoption also usually applies once finally issued! Key Proposed Changes: - Clarified auditor responsibilities relating to fraud in an audit; - Emphasised professional scepticism, to ensure auditors remain alert to possible fraud and exercise professional scepticism throughout an audit; - Strengthened identification and assessment of risks of material misstatement due to fraud - Clarified response to fraud or suspected fraud identified during the audit; - Increased ongoing communication with management and those charged with governance about fraud; - Increased transparency about auditors' responsibilities and fraud-related procedures in the auditor's report; and - Enhanced audit documentation requirements about fraud-related procedures.

Content

The following aspects of the ISA 240 Fraud (Revised 202X) will be identified, simplified and discussed: Introduction and scoping, as well as definitions

• Requirements
• Auditor’s responsibilities
• Management and TCWG responsibilities
• Risk identification and assessment
• Required fraud procedures
• Some application material (as may be relevant to practically visualise the requirements)
• Possible effective dates
• Differences from previous version of the standard to this version