Fraud Auditing.ppt

Fraud Auditing Chapter 11 Learning Objective 1 Define fraud and distinguish between fraudulent financial reporting and misappropriation of assets. Types of Fraud Learning Objective 2 Describe the fraud triangle and identify conditions for fraud. The Fraud Triangle Examples of Risks Factors for Fraudulent Reporting Examples of Risks Factors for Fraudulent Reporting Examples of Risks Factors for Fraudulent Reporting Examples of Risks Factors for Misappropriation of Assets Examples of Risks Factors for Misappropriation of Assets Examples of Risks Factors for Misappropriation of Assets Learning Objective 3 Understand the auditor’s responsibility for assessing the risk of fraud and detecting material misstatements due to fraud. Assessing the Risk of Fraud Professional Skepticism Sources of Information Gathered to Assess Fraud Risks Documenting Fraud Assessment Learning Objective 4 Identify corporate governance and other control environment factors that reduce fraud risks. Corporate Governance Oversightto Reduce Fraud Risks Example Elements for a Code of Conduct Example Elements for a Code of Conduct Example Elements for a Code of Conduct Organizational Factors Contributing to Risk of Fraud Organizational Factors Contributing to Risk of Fraud Learning Objective 5 Develop responses to identified fraud risks. Responding to the Risk of Fraud Learning Objective 6 Recognize specific fraud risk areas and develop procedures to detect fraud. Rates of Fraud Occurrence Rates of Fraud Occurrence Specific Fraud Risk Areas Learning Objective 7 Understand interview techniques and other activities after fraud is suspected. Methods of Uncovering Fraud Methods of Uncovering Fraud Methods of Uncovering Fraud Responding to Misstatements that May be the Result of Fraud Types of Inquiry Techniques Types of Inquiry Techniques End of Chapter 11 2003 1998 1994 Internal controls Internal audit Notification by employee 77% 51% 52% 65% 43% 47% 63% 58% 51% 2003 1998 1994 Accident Anonymous tip Noti