What audit procedures should be performed to detect fraud?
While the audit team is not responsible for identifying all instances of fraud, the audit team is responsible for identifying fraud that results in a material misstatement to the financial statements. However, there are a number of procedures that the audit team should perform during an audit to detect fraud.
The visual lists out the procedures that should be performed:
You might also be interested in...
What factors should be assessed to understand the risk of fraud?
When assessing the existence of fraud, try to think like a fraudster! Try to understand where the opportunity to commit fraud is, where there are any pressures or incentives, and how an employee might rationalize fraud. The three key factors of fraud to assess include opportunities, pressure & incentives, and rationalization & attitude. 1) Opportunities: […]