[Company name]
FOR2601
Assignment 1
Semester 2 2024
(234942) - DUE 10
August 2024
QUESTIONS WITH 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]
Question 1.1: Detection Techniques for Fraud
Auditors use a variety of techniques to detect fraud within an organization.
Here are some key methods:
1. Data Analysis: Auditors analyze large sets of financial data to identify
anomalies or patterns that may indicate fraudulent activity. This includes
trend analysis, ratio analysis, and benchmarking against industry
standards.
2. Internal Controls Review: Evaluating the effectiveness of an
organization’s internal controls helps identify weaknesses that could be
exploited for fraud. This includes segregation of duties, authorization
procedures, and physical controls.
3. Substantive Testing: This involves detailed examination of financial
transactions and account balances. Auditors may use sampling
techniques to test a subset of transactions for accuracy and legitimacy.
FOR2601
Assignment 1
Semester 2 2024
(234942) - DUE 10
August 2024
QUESTIONS WITH 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]
Question 1.1: Detection Techniques for Fraud
Auditors use a variety of techniques to detect fraud within an organization.
Here are some key methods:
1. Data Analysis: Auditors analyze large sets of financial data to identify
anomalies or patterns that may indicate fraudulent activity. This includes
trend analysis, ratio analysis, and benchmarking against industry
standards.
2. Internal Controls Review: Evaluating the effectiveness of an
organization’s internal controls helps identify weaknesses that could be
exploited for fraud. This includes segregation of duties, authorization
procedures, and physical controls.
3. Substantive Testing: This involves detailed examination of financial
transactions and account balances. Auditors may use sampling
techniques to test a subset of transactions for accuracy and legitimacy.
