Artículo 18. Discussion of the Potential for Material Misstatement Due to Fraud

.52 The discussion among the key engagement team members about the potential for material misstatement due to fraud should occur with an attitude that includes a questioning mind, and the key engagement team members should set aside any prior beliefs they might have that management is honest and has integrity. The discussion among the key engagement team members should include: An exchange of ideas, or "brainstorming," among the key engagement team members, including the engagement partner, about how and where they believe the company's financial statements might be susceptible to material misstatement due to fraud, how management could perpetrate and conceal fraudulent financial reporting, and how assets of the company could be misappropriated, including (a) the susceptibility of the financial statements to material misstatement through related party transactions, (b) how fraud might be perpetrated or concealed by omitting or presenting incomplete or inaccurate disclosures, and (c) how the financial statements could be manipulated through management bias in accounting estimates in significant accounts and disclosures; A consideration of the known external and internal factors affecting the company that might (a) create incentives or pressures for management and others to commit fraud, (b) provide the opportunity for fraud to be perpetrated, and (c) indicate a culture or environment that enables management to rationalize committing fraud; A consideration of the risk of management override; and A consideration of the potential audit responses to the susceptibility of the company's financial statements to material misstatement due to fraud. .53 The auditor should emphasize the following matters to all engagement team members: The need to maintain a questioning mind throughout the audit and to exercise professional skepticism in gathering and evaluating evidence, as described in AS 2401; 30 The need to be alert for information or other conditions (such as those matters presented in Appendix C of AS 2810) that might affect the assessment of fraud risks; and If information or other conditions indicate that a material misstatement due to fraud might have occurred, the need to probe the issues, acquire additional evidence as necessary, and consult with other team members and, if appropriate, others in the firm including specialists. 31