Fraud Enquiry Management

To complete the questions below download the Word document and return to your appointed auditor.

Below are the responses from management on your questions on our role in relation to fraud that may have taken place and any suspected or alleged fraud relating to [name of entity] for the year ending [insert date]:

QuestionsResponse
How are fraud risks identified? Have any disclosures been identified
where there is a potential risk of fraud?
 
What fraud risks have been identified?  
Have any disclosures been identified where there is a potential
risk of fraud?
 
Has a formal fraud risk assessment been completed?  
If so, what procedures were performed and what were the results of
this process? How often is this undertaken? Who is involved in this process?
 
Areas susceptible to a risk of material misstatement due to fraud
What is management’s assessment of the risk that the financial statements
could include a material misstatement due to fraud?
 
Where could this occur?  
Communication about fraud
How are fraud risks and the responses communicated to those charged
with governance?
 
Are those charged with governance involved in the risk assessment process?  
How are expectations of appropriate business practice and ethical behaviour
communicated to employees?
 
What is done if employees are not behaving appropriately?  
Actual, suspected, or alleged frauds
Have any frauds been identified?  
Are you aware any suspected or alleged frauds?  
What has been the result of any fraud investigations?  
How did the fraud occur? How was it identified? What happened to fraudster,
how much was involved and were any monies or assets recovered?
 
Please provide copies of any investigation reports for these.  

________________
[Name and position of signatory]