[Company name]
FOR2601
Assignment 1
Semester 2 2024
(234942) - DUE 10
August 2024
QUESTIONS WITH DETAILED 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 Used by Auditors to Detect Fraud in an
Organization
1. Data Analytics and Software Tools: Auditors use advanced data
analytics tools to scrutinize large datasets for anomalies and patterns
indicative of fraud. This includes analyzing transaction trends,
identifying unusual transactions, and flagging inconsistencies.
2. Internal Controls Review: Auditors examine the effectiveness of an
organization's internal controls. Weak or bypassed controls can be a red
flag for potential fraud. Auditors look for gaps in the control processes
that could be exploited.
3. Surprise Audits: Conducting unannounced audits can help detect fraud
by catching employees off guard. These surprise checks can reveal
discrepancies that regular audits might miss.
FOR2601
Assignment 1
Semester 2 2024
(234942) - DUE 10
August 2024
QUESTIONS WITH DETAILED 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 Used by Auditors to Detect Fraud in an
Organization
1. Data Analytics and Software Tools: Auditors use advanced data
analytics tools to scrutinize large datasets for anomalies and patterns
indicative of fraud. This includes analyzing transaction trends,
identifying unusual transactions, and flagging inconsistencies.
2. Internal Controls Review: Auditors examine the effectiveness of an
organization's internal controls. Weak or bypassed controls can be a red
flag for potential fraud. Auditors look for gaps in the control processes
that could be exploited.
3. Surprise Audits: Conducting unannounced audits can help detect fraud
by catching employees off guard. These surprise checks can reveal
discrepancies that regular audits might miss.
