CAUA040/CAUD080 FRAUD, ERROR, COMMUNICATIONS AND LAWSA ND REGULATIONS COURSE NOTES

CAUA040 / CAUD080
MODULE THREE: Responsibility in respect of fraud and errors, communication, auditor’s
liability and the consideration of laws and regulations.

HANDBOOKS:
DYNAMIC AUDITING CHAPTER 6
SAICA HANDBOOKS: ISA240 The auditor’s responsibility relating to fraud in an audit of financial
statements, ISA250 (REVISED) Consideration of laws and regulations in an audit of financial
statements, ISA260 Communication to those charged with governance

CONTENT

1. Study objective
2. Importance of topic
3. Exam techniques
4. Questions
a. Discussion question
5. Sources
6. Class notes

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 CAUA040/CAUD080 FRAUD, ERROR, COMMUNICATIONS AND LAWSA ND REGULATIONS COURSE NOTES

1. Study objective

After studying the module you should be able to:

 Know and understand the underlying principles of the theory.

 Be able to apply the theory to practical question situations.

2. Importance of the topic

This is a popular topic to be asked, integrated with other topics.

3. Exam technique

THE BEST WAY TO PREPARE YOURSELF FOR TESTS AND EXAMS IS TO

WORK THROUGH AS MANY QUESTIONS UNDER EXAM CONDITIONS AS
POSSIBLE.

Possible type of questions to be asked:

 Discuss the auditor’s responsibilities with regard to prevention and detection of fraud
 Discuss the auditor’s liability in respect of an audit.
 Discuss/evaluate the fraud risk and discuss how to respond to the fraud risks identified.

4. Questions

Refer to Question bank

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