FOR2601 Assignment 1
Semester 2 2024
(234942) - DUE 10
August 2024
[Company address]
, FOR2601 Assignment 1 Semester 2 2024 (234942) - DUE 10 August 2024
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 Organisation
Auditors employ a variety of techniques to detect fraud within an organisation. These
methods can be broadly categorized into the following:
1. Analytical Procedures:
o Trend Analysis: Comparing financial and operational data over multiple
periods to identify anomalies or unexpected trends.
o Ratio Analysis: Evaluating financial ratios such as profit margins, return
on assets, and liquidity ratios to detect inconsistencies that may indicate
fraudulent activity.
o Benchmarking: Comparing the organisation’s financial data against
industry standards or competitors to identify discrepancies.
2. Data Mining and Analytics:
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