IAP question steve help please

Glynis

I need to know what the difference is in auditing between fraud and management fraud in relation to testing.

Help urgently needed please.

Glynis

Steve Collings

Glynis,

This is a very vague question and I am not sure what it is you are asking me.

Do you mean the difference between employee fraud and management fraud? If you do then if you look at ISA 240 you will see that it talks about employee fraud manipulating a weakness in the internal control environment, whereas management fraud is essentially overriding internal controls.

Compliance testing (test of controls), that are done properly, should flag up any instances of such.

Regards

Steve