At its meeting on November 29-30, 2021, the AASB provided input to the IAASB members from Canada on the IAASB Working Group’s project proposal to revise ISA 240. Key issues discussed included: (i) strengthening the auditor’s responses to assessed risks of a material misstatement due to fraud; (ii) clarifying the approach to journal-entry testing when considering fraud; (iii) clarifying how performing a robust risk assessment is critical in determining whether the rebuttable presumption of fraud risk in revenue recognition is applicable; and (iv) enhancing the application material in ISA 240 related to fraud considerations for external confirmation procedures. The AASB also discussed the Canadian approach to the Fraud and Going Concern projects.

Review the Executive Summary on the AASB's Web site.