How to Audit for Fraud

Upon successful completion of this course, participants will be able to:

Chapter 1

• Recognize the components of the fraud triangle.
• Recognize who is responsible for fraud prevention and detection.
• Understand the reasons for professional skepticism in the conduct of an audit for fraud.
• Describe how to communicate to the client a discovery of fraud.
• Recognize the situations that create pressure for a client to falsify its financial statements.

Chapter 2

• Note the different types of scams that can be used to inflate the reported level of sales.
• Describe how to alter the outcome of the receivables turnover measurement.
• Cite the circumstances under which a client would want to recognize a large loss reserve.
• Recognize the methods that can be used to shift expenses into a later period.
• Cite the ways in which liabilities can be artificially lowered.
• Note the primary goal of mis-reporting cash flows in the statement of cash flows.

Chapter 3

• Describe the most appropriate audit team staffing when fraud is suspected.
• Recognize the characteristics of a fraudulent journal entry.
• Describe the techniques that can be used to alter a document to cover up a fraud.
• Note the methods available for tracking down the theft of cash.