FOR2601
ASSIGNMENT 1 SEMESTER 1 2025
UNIQUE NO.
DUE DATE: 9 MARCH 2025
, FOR2601
Assignment 1 Semester 1 2025
Unique Number:
Due Date: 9 March 2025
Forensic Methods and Techniques II (Module A)
QUESTION 1
1.1 Detection Techniques Used by Auditors to Uncover Fraud
Auditors have a few smart ways to catch fraud in a company.
1. Data Analysis & Trend Examination – Auditors carefully study financial
records, looking for unusual patterns, missing documents, or numbers that just
don’t add up. If something looks too perfect or doesn’t match past trends, it
raises red flags.
2. Comparing Financial Reports Over Time – By comparing financial statements
from different years, auditors can spot any sudden changes that don’t make
sense. If a company’s profits shoot up out of nowhere without a reasonable
explanation, fraud might be happening.
3. Surprise Audits – Fraudsters usually cover their tracks when they know an audit
is coming. Surprise checks catch them off guard, making it easier to find
inconsistencies in records or unauthorized transactions.
4. Interviews & Observations – Talking to employees can reveal a lot. Auditors
may ask staff questions about financial processes and transactions. Sometimes,
employees unknowingly give hints about fraud just by explaining their daily work.
5. Document Verification & Cross-Checking – Auditors check if transactions
match supporting documents, like invoices and receipts. If a payment is made
but there’s no proof of a real service or product, fraud might be involved.
ASSIGNMENT 1 SEMESTER 1 2025
UNIQUE NO.
DUE DATE: 9 MARCH 2025
, FOR2601
Assignment 1 Semester 1 2025
Unique Number:
Due Date: 9 March 2025
Forensic Methods and Techniques II (Module A)
QUESTION 1
1.1 Detection Techniques Used by Auditors to Uncover Fraud
Auditors have a few smart ways to catch fraud in a company.
1. Data Analysis & Trend Examination – Auditors carefully study financial
records, looking for unusual patterns, missing documents, or numbers that just
don’t add up. If something looks too perfect or doesn’t match past trends, it
raises red flags.
2. Comparing Financial Reports Over Time – By comparing financial statements
from different years, auditors can spot any sudden changes that don’t make
sense. If a company’s profits shoot up out of nowhere without a reasonable
explanation, fraud might be happening.
3. Surprise Audits – Fraudsters usually cover their tracks when they know an audit
is coming. Surprise checks catch them off guard, making it easier to find
inconsistencies in records or unauthorized transactions.
4. Interviews & Observations – Talking to employees can reveal a lot. Auditors
may ask staff questions about financial processes and transactions. Sometimes,
employees unknowingly give hints about fraud just by explaining their daily work.
5. Document Verification & Cross-Checking – Auditors check if transactions
match supporting documents, like invoices and receipts. If a payment is made
but there’s no proof of a real service or product, fraud might be involved.
