Fraud and Management override

of controls
Company VF Services (Mauritius) Pte. Limited
Year ended 31 December 2017
Completed by Baba Karki Date 15 February 2018
Reviewed by Surendra Pathak Date

Performance Materiality level or specific materiality 75% of materiality

Procedures Ref / Comments

1. Agree or reconcile the financial statements with the underlying accounting records, including the trial balance. Reconciled.
Refer: Trail Balance
Mapping
2. Ensure all amounts and disclosures in the financial statements have been subject to audit where necessary and Yes
appropriate.
3. Test appropriateness of journal entries and other adjustments made in the preparation of the financial Appropriateness of
statements. In designing and performing these audit procedures: Journal entries and other
adjustment is made
a) Make inquiries of individuals involved in the financial reporting process about inappropriate or
during the review of
unusual activity relating to the processing of journal entries and other adjustments;
Financial statement
b) Test journal entries and other adjustments made at the end of a reporting period; and
a) No such
c) Consider the need to test journal entries and other adjustments throughout the period. inappropriate or
unusual activity
relating to
processing of
journal entries was
observed.
b) Journal entries and
adjustment made at
of reporting period
are in line with
Framework for
preparation and
presentation of
financial statement.

4. Review accounting estimates for biases and evaluate whether the circumstances producing the bias, if any, Management evaluate
represent a risk of material misstatement due to fraud. In performing this review: the accounting estimate
based on the latest
a) Evaluate whether the judgments and decisions made by management in making the accounting estimates
reliable information and
included in the financial statements, even if they are individually reasonable, indicate a possible bias on the part
uncertainties inherent in
of the entity’s management that may represent a risk of material misstatement due to fraud. If so, re-evaluate
business activities.
the accounting estimates taken as a whole; and
b) Perform a retrospective review of management judgments and assumptions related to significant accounting
estimates reflected in the financial statements of the prior year.
5. For significant transactions that are outside the normal course of business or otherwise appear unusual that No such significant
were identified during the audit, consider whether the business rationale (or lack thereof) of the transactions transactions were
suggests that they may have been entered into to engage in fraudulent financial reporting or to conceal identified which were
misappropriation of assets outside the normal
course of business or
 unusual in nature during
the audit.
6. When misstatements have been identified, consider whether they may be indicative of fraud and if there is such Refer: Summary of
an indication, consider the implication in relation to other aspects of the audit, particularly the reliability of Misstatements
management representations.
7. Evaluate whether the selection and application of accounting policies (particularly those related to subjective N/A
measurements and complex transactions) may be indicative of fraudulent financial reporting resulting from
management’s efforts to manage earnings
8. Document additional procedures to be performed to respond to specifically identified risks of management Refer: Significant risk
override of controls, if relevant (see D7. assessment.