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In response the International Auditing and Assurance Standards Board IAASB issued a revised version of ISA 240 in

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INTERNATIONAL STANDARD ON AUDITING 240 THE AUDITOR S RESPONSIBILITIES RELATING TO FRAUD IN AN AUDIT OF

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The revised standard clarifies the auditor s responsibilities emphasizes a fraud lens in the auditor s risk identification

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Where fraud involves senior management or causes a material misstatement the auditor must report directly to those

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The matters related to fraud or suspected fraud communicated with management those charged with governance regulatory and

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ISA 240 Revised includes a new overarching requirement to communicate with management and TCWG matters related to fraud at

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Effective for engagements relating to financial periods commencing on or after 15 December 2021

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If the auditor suspects fraud involving management the auditor shall communicate these suspicions to those charged with

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Enhanced communication requirements Enhanced two way communication with management and those charged