Author

IIA-Australia

Date

Topics Explored

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Extract/Description

When planning internal audit engagements, internal auditors should be in a defensible position when deciding whether to:

• Not view the audit topic as a notable fraud risk.
• Include a heightened focus on fraud.

To achieve this, there should be a formal process in place – ‘professional judgement’ is not enough.

Key Points

1. 1. While not every internal audit engagement will require heightened consideration of fraud risk, the Standards indicate that due professional care requires consideration of risks including fraud risk.
   2. To ensure there is proper consideration of fraud risk, a formal assessment tool such as a fraud risk planning checklist should be used.

Relevant Industries

Level of Assumed Knowledge