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What is an assurance engagement and what are its elements? What is the structure of the ISA standards (the numbering series)? What does ISA 315 (Revised) require regarding risk assessment? What does ISA 330 address? What does ISA 500 establish about audit evidence? What is ISA 320 about? What does ISA 570 cover? What is the difference between reasonable assurance and limited assurance engagements? What does ISA 260 and ISA 265 require regarding communication? What is professional skepticism and why do ISAs emphasize it?
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What is ISA 240 about?

Intermediate

Answer

ISA 240 covers the auditor's responsibilities relating to fraud in an audit of financial statements. It requires professional skepticism, discussion among the team about fraud susceptibility, risk assessment procedures focused on fraud, a presumed risk of fraud in revenue recognition, and specific responses including addressing management override of controls.
Real-world example Per ISA 240, the team tests journal entries and estimates for bias to address the risk of management override.

Common follow-ups: Why is revenue recognition a presumed fraud risk? | How does the auditor address management override?

Fraud & Error Responsibilities Audit Risk & Materiality ISA Standards
All 19 ISA Standards questions