Inaccurate Financial Statements Due to Fraud and Auditors' Communication Responsibilities

Auditing Communication
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Auditing Communication
Explain how Wells might respond to risks of material misstatement of the financial statements due to fraud?
Audit professional care calls for auditors to exercise professional skepticism CITATION Top17 \l 2057 (Topor, 2017). Professional skepticism involves questioning the mind besides critically evaluating the sufficiency and appropriateness of the available audit evidence. There are several ways in which professional skepticism can be applied. For example, the auditor can modify the planned audit processes and procedures to obtain a different perception of the detected fraud to establish more reliable, evidence-based relevant assertions. Modifying planned audits can be done by changing the nature of audit procedures, changing the timing of the audit, and changing the extent of the procedures utilized to pursue more corroborative evidence. Another way the auditor can apply professional skepticism is by obtaining additional appropriate evidence to support the current findings of fraud within the material statements provid...