FOR2601 Assignment 1 (COMPLETE ANSWERS) Semester 2 2024 - DUE
10 August 2024 ; 100% TRUSTED Complete, trusted solutions and
explanations
QUESTION 1 1.1 Discuss in your own words the detection techniques that
can be used by auditors to detect fraud in an organisation. (10) 1.2 Discuss
the basic considerations or tactical steps you have to consider when starting a
new investigation. (10) [20]
1.1 Detection Techniques Used by Auditors to Detect Fraud in an Organization
Auditors employ a variety of techniques to detect fraud within an organization. These techniques
are designed to uncover irregularities, ensure compliance with regulations, and protect the
organization's assets. Here are ten detection techniques commonly used by auditors:
1. Data Analytics:
o Description: Auditors use sophisticated data analysis tools to examine large
volumes of transactions for anomalies or patterns indicative of fraud.
o Application: Techniques such as Benford's Law, trend analysis, and regression
analysis can reveal unusual patterns that warrant further investigation.
2. Internal Control Reviews:
o Description: Auditors evaluate the effectiveness of an organization's internal
controls to identify weaknesses that could be exploited for fraud.
o Application: Reviewing segregation of duties, authorization processes, and
access controls helps ensure that controls are functioning as intended.
3. Substantive Testing:
o Description: Detailed testing of account balances and transactions to verify their
accuracy.
o Application: Auditors may sample transactions to ensure they are properly
recorded and supported by adequate documentation.
4. Forensic Accounting:
o Description: Specialized accounting skills are applied to investigate and analyze
financial records for signs of fraud.
o Application: Techniques include tracing asset flows, reconstructing transactions,
and analyzing financial statements for inconsistencies.
5. Surprise Audits:
o Description: Unannounced audits are conducted to catch fraudulent activities that
regular audits might miss.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller lakeli2018. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R50,38. You're not tied to anything after your purchase.
