FOR2601 Assignment 1
Semester 2 2024 (234942) -
DUE 10 August 2024
QUESTIONS AND ANSWERS
[School]
[Course title]
, 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 to Identify Fraud in an Organization
1. **Analytical Procedures**: Auditors use analytical procedures to compare financial data over
different periods or against industry standards to identify unusual trends or anomalies. Ratios and
trend analysis can highlight discrepancies that may indicate fraud.
2. **Data Mining and Analytics**: Advanced software tools can analyze large sets of data to
uncover patterns and outliers. Data mining techniques can help identify transactions that deviate
from the norm, signaling potential fraud.
3. **Internal Controls Review**: Evaluating the effectiveness of an organization’s internal
controls can help auditors identify weaknesses that could be exploited for fraudulent activities.
This includes assessing the segregation of duties, authorization processes, and access controls.
Semester 2 2024 (234942) -
DUE 10 August 2024
QUESTIONS AND ANSWERS
[School]
[Course title]
, 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 to Identify Fraud in an Organization
1. **Analytical Procedures**: Auditors use analytical procedures to compare financial data over
different periods or against industry standards to identify unusual trends or anomalies. Ratios and
trend analysis can highlight discrepancies that may indicate fraud.
2. **Data Mining and Analytics**: Advanced software tools can analyze large sets of data to
uncover patterns and outliers. Data mining techniques can help identify transactions that deviate
from the norm, signaling potential fraud.
3. **Internal Controls Review**: Evaluating the effectiveness of an organization’s internal
controls can help auditors identify weaknesses that could be exploited for fraudulent activities.
This includes assessing the segregation of duties, authorization processes, and access controls.
