Question

You are auditing a mid-sized company. The CFO has

Q: Answer-You are auditing a mid-sized company. The CFO has unilaterally overridden internal controls to exped...

As per SA 240, overriding controls is a strong fraud risk indicator. Auditor must respond by revising risk assessment and performing additional procedures, especially around journal entries and estimates.

unilaterally overridden internal controls to expedite year-end closing. The company has weak segregation of duties. As per SA 240, what should be your response?

A Ignore if materiality is not breached

B Document and proceed

C Communicate to management

D Assess risk of fraud and extend audit procedures

E Withdraw from engagement

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You are auditing a mid-sized company. The CFO has

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