Requires ‘brainstorming’ sessions to discuss how and where the entity’s financial statements might be susceptible to material …show more content…
* Considering fraud risk factors. * Considering certain other information
SAS 99 requires auditors to ask management questions and make a decision as to whether they need to ‘educate’ management about fraud and the types of controls. The standard also requires auditors to make inquiries of the audit committee, internal audit personnel and others within the entity.
Requires the auditor to use the information gathered to identify risks that may result in a material misstatement. provides guidance and support on how to identify and assess risks. It challenges auditors to change the way they think about assessing fraud risks. Auditors should identify risks and synthesize how those risks could lead to a material misstatement. This section specifically requires that improper revenue recognition and management override of controls be considered.
Requires the auditor to evaluate the entity’s programs and controls that address the identified risks of material