In short
The engagement team discussion is a required meeting of key audit team members during planning to discuss how and where the entity's financial statements might be susceptible to material misstatement, including from fraud.
Key takeaways
- It includes how management could commit and conceal fraudulent financial reporting and how assets could be misappropriated.
- Team members set aside any belief that management is honest.
- The engagement partner decides which matters are communicated to team members not present.
Where it's tested
AUD: Fraud Risk — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
The required brainstorming session among the engagement team regarding fraud must occur: