How to Audit for Fraud

Detect fraud by learning how to recognize risk indicators and respond with targeted audit procedures. This course explains the red flags and subtle warning signs that signal potential misconduct, then details the extended testing techniques that uncover fraudulent activity. You will clarify management’s and the auditor’s responsibilities for prevention and detection, and examine the methods used to fraudulently misstate financial statements, enabling you to design more effective audit responses.
Format

PDF Course

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Duration

3 Hours

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Course Information

Author: Steven Bragg
Course Number: AU1012

Table of Contents
Chapter 1. Fraud and the Auditor's Role
Chapter 2. Fraudulent Financial Reporting
Chapter 3. Extended Audit Procedures

Learning Objectives
  • 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.
  • Specify 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.
  • Specify the primary goal of mis-reporting cash flows in the statement of cash flows.
  • 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.
  • Specify the methods available for tracking down the theft of cash.

Level: Overview
Instructional Method: QAS Self-Study
NASBA Category: Auditing
Prerequisites: None
Advance Preparation: None
Latest Review Date: November 2024
Program Registration Requirements: Click on the Enroll button to pay for and access the course. You will then be able to download the course as a PDF file, then take an on-line examination, and then download a certificate of completion if you pass the examination.
Program Refund Policy: For more information regarding administrative policies concerning complaints, refunds, and other matters, see our policies page.

AccountingTools, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have the final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.
The NASBA sponsor identification number for Accountingtools, Inc. is 115881.

AccountingTools is an IRS Approved Continuing Education Provider. We are compliant with the requirements for continuing education providers (as described in sections 10.6 and 10.9 of the Department of Treasury’s Circular No. 230 and in other IRS guidance, forms, and instructions). Our IRS Approved Continuing Education Provider number is 72821.