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Assessing the risk of fraud in a financial statement audit is a difficult audit judgment. Auditing...

Assessing the risk of fraud in a financial statement audit is a difficult audit judgment. Auditing standards require the auditor to perform several audit procedures to accumulate information to assess the risk of fraud. You are the​ in-charge auditor responsible for planning the financial statement audit of​ Spencer, Inc.

What must the auditor document in the working papers related to this brainstorming​ session?

Auditing standards require that the audit documentation include ____ (any or significant) decisions made during the discussion among ____ (engagement team personnel in performing, engagement team personnel in planning, management and engagement team personnel in performing, or management and engagement team personnel in planning), the audit about the susceptibility of the entity's financial statements to material fraud, including _____ (how and when the detection of fraud occurred or how and when the discussion occurred and who participated).

Fill in the blanks with the answers in the parentheses.

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Auditing standards require that the audit documentation include __significant__ (any or significant) decisions made during the discussion among management and engagement team personnel in planning (engagement team personnel in performing, engagement team personnel in planning, management and engagement team personnel in performing, or management and engagement team personnel in planning), the audit about the susceptibility of the entity's financial statements to material fraud, including how and when the discussion occured and who participated (how and when the detection of fraud occurred or how and when the discussion occurred and who participated).

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