ISA 240 Fraud Risk Pack

Complete your ISA 240 fraud
documentation in 2 hours — not 15.

8 production-ready working papers. Every risk factor mapped to a response procedure. Every ISA paragraph cross-referenced. Updated for ISA 240 (Revised), effective December 2026.

ISA 240 ISA 240 (REVISED) ISA 315 ISA 330

You know what an ISA 240 file should look like. The problem is building it.

The fraud risk assessment is the most documentation-intensive area of the audit. Every engagement needs risk factor identification, a documented brainstorming session, journal entry testing with fraud-specific selection criteria, management override procedures, revenue recognition fraud evaluation, and a response matrix that links every identified risk to a specific procedure.

Most firms build this from scratch every year. A senior auditor spends 12–15 hours constructing the template. The manager spends another 3–4 hours reviewing and rebuilding sections that do not meet the standard. The partner asks where the golden thread is — the documented link from identified risk to tailored response to conclusion. Back to the working paper.

ISA 240 (Revised) makes this harder. Effective December 2026, the revised standard introduces new requirements for fraud-specific stand-back evaluation, expanded TCWG communication throughout the audit, and stricter documentation of how fraud risk responses differ from error-focused testing. Every existing ISA 240 template in your firm will need updating.

What you get

8 Working Papers. One Complete Fraud Risk Assessment File.

Every document traces to specific ISA 240 paragraphs. Open the pack, fill in the engagement details, and start working.

FR-01 Excel
Fraud Risk Factor Identification

101 risk factors across incentive, opportunity, and rationalisation — pre-mapped to ISA 240.A25 with severity assessment and entity-specific evaluation fields.

FR-02 Word
Fraud Risk Brainstorming Session

Structured engagement team discussion template with attendee tracking, prompted discussion areas, and documented outcomes per ISA 240.15.

FR-03 Excel
Journal Entry Testing Plan

Population completeness verification, fraud risk-based selection criteria linked to ISA 240.A46, testing results documentation, and conclusion template. 4 structured tabs.

FR-04 Word
Management Override Assessment

Documents all three mandatory management override procedures (ISA 240.32): journal entries, accounting estimates, and significant unusual transactions.

FR-04a Excel
Estimates Retrospective Review

Companion to FR-04. Documents the retrospective review of prior-year accounting estimates for indicators of management bias per ISA 240.32(b).

FR-05 Excel
Revenue Recognition Fraud Risk

Revenue stream analysis with per-stream fraud risk evaluation, presumption assessment, specific procedures, and a reference sheet of common revenue fraud schemes with enforcement examples.

FR-06 Excel
Fraud Risk Response Documentation

The golden thread. Maps every identified fraud risk to specific audit responses, documenting how nature, timing, and extent of procedures differ from error-focused testing. 6 worked examples.

FR-07 Word
TCWG Communication

Fraud-related communication with those charged with governance per ISA 240.40-42. Includes enforcement case documentation prompts.

FR-08 Word
Stand-Back Evaluation

Fraud-specific capstone evaluation required by ISA 240 (Revised). Documents the engagement partner’s conclusion that fraud risk assessments remained appropriate.

The golden thread

Every Risk Traces to a Response.
Every Response Traces to a Conclusion.

The most common quality review finding on ISA 240 files: "insufficient link between identified fraud risks and audit procedures performed." This pack solves it architecturally.

Identify
FR-01 / FR-02
Respond
FR-06
Execute
FR-03 / FR-04 / FR-05
Communicate
FR-07
Conclude
FR-08

Risks identified in FR-01 and FR-02 feed directly into the response matrix in FR-06. FR-06 cross-references to FR-03 (journal entries), FR-04 (management override), and FR-05 (revenue recognition). FR-08 closes the loop with a stand-back that confirms every risk has a documented, concluded response. The reviewer does not have to hunt for the thread. It is built into the structure.

The difference

What changes when the file is already built.

Without a Framework
12–15 hours building from scratch per engagement
“Where’s the golden thread?” from the partner review
Risk factors identified but not linked to procedures
Generic journal entry testing criteria not tied to fraud risks
Revenue fraud presumption assessed as blanket, not per stream
Stand-back requirement (ISA 240 Revised) — not covered at all
With This Pack
2–3 hours of customisation per engagement
Every risk factor maps to a documented response
Journal entry selection criteria linked to specific fraud risks
Revenue streams individually assessed with worked example
FR-08 stand-back already structured for ISA 240 (Revised)
Partner review comes back clean because the structure is defensible

ISA 240 Fraud Risk Assessment & Response Pack

349

Less than 2 hours of a manager's billable time. Saves 10–15 hours per engagement.

Get My ISA 240 Pack

The Audit-Proof Promise: full refund within 14 days if the templates do not fit your engagement approach.

Who this is for

Built for auditors who are actually doing this work.

Audit managers

Running 3–8 engagements per year who are tired of rebuilding the fraud risk assessment file every time.

Senior associates

Leading their first complex engagement who need to know what a defensible ISA 240 file looks like.

Solo practitioners & small firm partners

Who do not have an internal methodology team and need to produce Big 4-quality documentation efficiently.

Internal audit teams

Preparing for external audit who want to see exactly what the auditor will check and fix gaps before they arrive.

IMPORTANT UPDATE

ISA 240 (Revised) is effective for audits of periods beginning on or after 15 December 2026.

The revised standard is not a minor update. Key changes that affect your fraud documentation:

Fraud-specific stand-back evaluation

The engagement partner must now perform a dedicated evaluation at or near completion — not just a general ISA 330 stand-back. FR-08 is built for this.

Expanded TCWG communication

Communication about fraud matters is required throughout the audit, starting at planning — not just at completion. FR-07 covers this.

Enhanced documentation of fraud vs error responses

The revised standard makes explicit what the AFM has been finding for years: “audit procedures effective in detecting errors may not be effective in detecting fraud.” FR-06 requires this distinction for every procedure.

Revenue fraud presumption tightened

Rebuttal is now described as “ordinarily inappropriate” unless all conditions are met. FR-05 documents this per revenue stream, not as a blanket assessment.

This pack is already built for the revised standard. Every working paper references both current and revised ISA 240 paragraph numbers.

ISA 240 Fraud Risk Brainstorming Template — free

Download FR-02: the structured brainstorming session template used in the full pack. Includes attendee tracking, prompted discussion areas, and documented outcomes per ISA 240.15.

No spam — we're auditors, not marketers.

Detailed breakdown

A Closer Look at What You Are Getting

FR-01 Fraud Risk Factor Identification
101 pre-populated risk factors from ISA 240 Appendix 1, categorised across all three fraud triangle dimensions
Each factor has assessment fields: Present? (Y/N/NA), Severity (H/M/L), Entity-Specific Evidence, and Cross-Reference to Response
Summary dashboard auto-calculates risk factor counts and severity distribution
Includes instructions sheet with ISA paragraph references at every step
FR-03 Journal Entry Testing Plan
Population completeness verification: document every source of journal entries, not just manual entries
12 fraud risk-based selection criteria pre-mapped to ISA 240.A46 with entity-specific parameter fields
Testing results table with columns for selection criterion link, nature of procedure, and findings
Conclusion template with explicit prompts for each required element
FR-05 Revenue Recognition Fraud Risk
Revenue stream analysis: identify every distinct stream and assess fraud risk per dimension (judgment, complexity, incentive, opportunity)
Per-stream presumption evaluation: accept or rebut with all four conditions documented
Reference sheet: 10 common revenue fraud schemes with red flags and enforcement case examples (Parmalat, Sunbeam, Wirecard, etc.)
Includes a fully worked example for a manufacturing entity with 3 revenue streams
FR-06 Fraud Risk Response Documentation
The golden thread matrix: maps every identified risk to specific procedures with documented modifications to nature, timing, and extent
Explicit column: "How does this differ from error testing?" — the exact question the AFM asks
6 fully worked examples across different entity types (manufacturer, SaaS, construction, etc.)
Completeness check: auto-verifies every identified risk has a documented, concluded response
Common questions

Questions

Can’t I just build these templates myself?

Of course. The question is whether 12–15 hours of a senior’s time per engagement is the best use of your team’s capacity. At EUR 150/hour, the pack pays for itself in the first 2 hours of saved time.

How do I know these are current?

Every working paper references specific ISA 240 paragraph numbers — both the current standard and ISA 240 (Revised), effective December 2026. When the standard changes, so do the templates. Updates are free.

Are these ISA-compliant?

Every template traces to specific ISA requirements. FR-01 maps to ISA 240.A25. FR-03 maps to ISA 240.32(a) and A44–A48. FR-05 maps to ISA 240.26–27. The paragraph references are embedded throughout — not as footnotes, but as structural elements.

What format are they in?

5 Excel workbooks and 3 Word documents. No macros, no special software. Open them in Excel/Word or Google Sheets/Docs and start working.

What if they don’t fit my engagement approach?

The Audit-Proof Promise: if the templates do not fit your approach, email us within 14 days for a full refund. No questions. See our full refund policy.

Who built these?

A practicing auditor with Big 4 and mid-tier experience. The templates reflect real engagement methodology, not academic interpretation.

Is there a firm licence?

The standard purchase covers one user. For team or firm-wide deployment, email [email protected] for licensing options.

ISA 240 Fraud Risk Assessment & Response Pack

8 working papers. 101 risk factors. 6 worked examples. Every ISA paragraph cross-referenced.

349

Saves 10–15 hours per engagement. Less than 2 hours of a manager's time.

Get My ISA 240 Pack

The Audit-Proof Promise: full refund within 14 days if the templates do not fit your engagement approach.