Discuss the eight-step fraud risk assessment process presented in SAS No. 99 and explain how performing a risk assessment will help to prevent or detect fraud.
1.Staff discussion
2.Obtain information needed to identify risk
3.Identify Risks
4.Assess identified risks and potential schemes after considering internal controls
5.Respond to the results of the risk assessment
6.Evaluate the audit evidence
7.Communicate about fraud to appropriate levels of management
8.Document procedures taken in steps 1-7
What is required by section 404 of the Sarbanes-Oxley Act?
How could this requirement prevent or detect fraud?
Sample Solution
