Professional standards require the auditor to plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether caused by error or fraud. This EBPAQC tool was developed to assist members in the consideration of fraud in their employee benefit plan audits.
It contains examples of risk factors relating to the two types of fraud an auditor should consider:
Fraudulent financial reporting
Misappropriation of assets
Within each of these fraud types, risk