FOR2601
Assignment 1 Semester 1 2025
Detailed Solutions, References & Explanations
Unique number:
Due Date: 9 March 2025
QUESTION 1
1.1
Fraud auditing focuses on identifying fraudulent activities within an organisation through
various detection techniques. These methods should be adaptable and continuously evolving
to address emerging risks. Below are some key techniques used by auditors to detect fraud:
1. Recognising Red Flags
Auditors identify "red flags" that indicate potential fraudulent activities. These red flags can be
behavioural (e.g., employees resisting audits, living beyond their means), transactional (e.g.,
suspicious invoices, preferential supplier treatment), system-related (e.g., repeated login
failures, audit logs turned off), and corporate (e.g., autocratic management, unexplained
losses). Recognising these signs allows auditors to investigate potential fraud early.
Terms of use
By making use of this document you agree to:
Use this document as a guide for learning, comparison and reference purpose,
Terms of use
Not to duplicate, reproduce and/or misrepresent the contents of this document as your own work,
By making use of this document you agree to:
Use this document
Fully accept the consequences
solely as a guide forshould you plagiarise
learning, reference,or and
misuse this document.
comparison purposes,
Ensure originality of your own work, and fully accept the consequences should you plagiarise or misuse this document.
Comply with all relevant standards, guidelines, regulations, and legislation governing academic and written work.
Disclaimer
Great care has been taken in the preparation of this document; however, the contents are provided "as is" without any express or
implied representations or warranties. The author accepts no responsibility or liability for any actions taken based on the
information contained within this document. This document is intended solely for comparison, research, and reference purposes.
Reproduction, resale, or transmission of any part of this document, in any form or by any means, is strictly prohibited.
Assignment 1 Semester 1 2025
Detailed Solutions, References & Explanations
Unique number:
Due Date: 9 March 2025
QUESTION 1
1.1
Fraud auditing focuses on identifying fraudulent activities within an organisation through
various detection techniques. These methods should be adaptable and continuously evolving
to address emerging risks. Below are some key techniques used by auditors to detect fraud:
1. Recognising Red Flags
Auditors identify "red flags" that indicate potential fraudulent activities. These red flags can be
behavioural (e.g., employees resisting audits, living beyond their means), transactional (e.g.,
suspicious invoices, preferential supplier treatment), system-related (e.g., repeated login
failures, audit logs turned off), and corporate (e.g., autocratic management, unexplained
losses). Recognising these signs allows auditors to investigate potential fraud early.
Terms of use
By making use of this document you agree to:
Use this document as a guide for learning, comparison and reference purpose,
Terms of use
Not to duplicate, reproduce and/or misrepresent the contents of this document as your own work,
By making use of this document you agree to:
Use this document
Fully accept the consequences
solely as a guide forshould you plagiarise
learning, reference,or and
misuse this document.
comparison purposes,
Ensure originality of your own work, and fully accept the consequences should you plagiarise or misuse this document.
Comply with all relevant standards, guidelines, regulations, and legislation governing academic and written work.
Disclaimer
Great care has been taken in the preparation of this document; however, the contents are provided "as is" without any express or
implied representations or warranties. The author accepts no responsibility or liability for any actions taken based on the
information contained within this document. This document is intended solely for comparison, research, and reference purposes.
Reproduction, resale, or transmission of any part of this document, in any form or by any means, is strictly prohibited.
