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FOR2601
Assignment 1
DUE 10 AUGUST 2024
[Type the company address]
, )
Book
Forensic Analytics
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.
FOR2601
Assignment 1
DUE 10 AUGUST 2024
[Type the company address]
, )
Book
Forensic Analytics
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.
