[Anonymous]

According to Ninja Notes, the auditor needs to document communications regarding fraud to the audit committee. Since it says “document,” does that mean it has to be in writing?

[Anonymous]

Anyone?

[M.O.D.]

I would say yes, document generally means a physical document, thus something in writing.

If something is verbal it is not considered a document.

BA Mathematics, UC Berkeley
Certificates in CPA and EA preparation, College of San Mateo
CMA I 420, II 470
FAR 91, AUD Feb 2015 (Gleim self-study)

[Anonymous]

Awesome. Thanks MOD.

[Anonymous]

By document, they mean include the details, nature, participants, etc. of the communicaion in the audit workpapers.

Off the top of my head, I want to say that the communication may be verbal like a presentation; however, I'm not 100% sure of the specific delivery requirements, but as a general practice, it would be prudent to use more formal [read: traceable] communication channels when discussion fraud and its ramifications with an audit committee.

[howmany74s]

Fraud documentation is *required* under AICPA, PCAOB, and IAS. Any communication with audit committee, management and internal team presentation has to be documented and included in an audit file.

[Author]

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