Professional Documents
Culture Documents
Inquiry to Gain Understanding a) To ensure the commitment of the management regarding fraud prevention, deterrence and detection.
suspected in the near past that could result in a material misstatement of the entity's financial statements? Have you received any letters or communications from employees, former employees, analysts, short sellers or others concerning allegations of fraud?
As confirmed in all the past auditing years,we confirm that there has been no fraud perpetrated or alleged or suspected that could result in a material misstatement of entity financial statement
We have not received any letters or communications from employees, former employees, analysts, short sellers or others concerning allegations of fraud.
what is the course of action by the management? There are no fraud or potential fraud that has come across during the year.
b) To gain an understanding of managements assessment of fraud risk and controls to mitigate the same. What are the risks of fraud as per your understanding in your Industry? There are no risk of any fraud or potential as it is a closely held company with limited staff.
The entity has not identified any fraud risks in relation to any Financial Statement Area Transaction Stream.
management in relation to the above identified areas to mitigate such risk? How are those controls monitored? Are the Journal Entries & adjustments made with proper authorizations?
The Journal Entries & adjustments are made with proper authorizations from Management
Inquiry to Gain Understanding c) To understand how management communicates its views on mitigation of fraud risks to others in the organisation. What are the means of communication through which management communicates its views on practices and ethics? Whether management has reported to the audit committee and responsibility on its processes for identifying and responding to the fraud risks in the entity? NA
NA
The Board has a general view saying they have enough controls to mitigate fraud risk.
What are the views of Audit Committee / Board on the operating effectiveness of Internal Control to mitigate the Fraud risks? For Listed Companies inquire about matters raised from the audit committee
NA
d) Understanding of Monitoring of locations or segments of business by Management How does the management monitor the controls that are operative at various locations or segments that are designed to mitigate fraud risks? Is any of the location or segment more susceptible to fraud? How are the views of the Audit Committee/ Board communicated to the organisation? Explain the procedures (if any) to review the operations of locations or segments that would indicate unusual or unexpected variations & how are the same resolved. e) Understanding about Internal audit function N.A
Whether client has internal audit function? If No, then whether its absence constitutes a fraud risk factor or affects our assessment of the effectiveness of internal control at the entity level? Entities that have an internal audit function, inquire of appropriate internal audit personnel about : i. Their views of the fraud risks
NA NA