Risk of Fraud and Misstatement

Taking steps to provide reasonable assurance that the activities of the Group/Company/Charity/Academy/Pension Scheme are conducted honestly and that its assets are safeguarded;
Establishing arrangements designed to deter fraudulent or other dishonest conduct and to detect any that occurs;
Implementing necessary procedures for the preparation and presentation of suitable financial information, including the selection and application of appropriate accounting policies and the development of reasonable accounting estimates in accordance with the requirements of the appropriate Financial Reporting Standard; and
Ensuring that, to the best of your knowledge and belief, financial information, whether used in the Group’s/Company’s/Charity’s/Academy’s/Pension Scheme’s financial systems or for financial reporting, is reliable.

Fraudulent financial reporting including the provision of misleading information and manipulation or massaging of figures through journal entries and adjustments, accounting estimates, revenue and profit recognition, suspense accounts and reconciliations of balances;
Misappropriation or misuse of assets;
Incurring of expenditure or committing the entity to liabilities for any improper use;
Obtaining revenue or assets by fraud;
Avoiding costs or expenses by fraud;
Financial misconduct by members of staff or management; and
Undisclosed related parties leading to misstatement in the financial statements.

Category: Audit and Assurance