FOR2601 Assignment 1
Semester 2 2024
(234942) - DUE 10
August 2024
QUESTIONS AND ANSWERS
, 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 for Fraud
1. Data Analysis and Analytics:
o Auditors use data analysis software to scrutinize large volumes of data
to identify patterns, anomalies, and trends that may indicate fraudulent
activities. Techniques such as Benford's Law, trend analysis, and
regression analysis are common.
2. Internal Controls Review:
o Evaluating the effectiveness of an organization's internal controls
helps auditors identify weaknesses that could be exploited for fraud.
This involves assessing segregation of duties, authorization processes,
and access controls.
3. Forensic Accounting:
o Forensic accountants use investigative skills to look into financial
records in detail. This may include tracing asset movements,
examining financial transactions, and reconstructing financial data.
4. Surprise Audits:
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