Purchase Solution

Explain auditors' responsibilities in detecting fraud

Not what you're looking for?

Ask Custom Question

Explain auditors' responsibilities with respect to detecting and reporting fraud?

Provide a brief overview of the types of reports that accompany an entity's financial statements?

Purchase this Solution

Solution Summary

Your tutorial is 505 words and three references and is presented in outline form to give you the main points of guidance for writing your own response.

Solution Preview

Explain auditors' responsibilities with respect to detecting and reporting fraud?

Frauds are intentional errors. Here is an outline of the auditor's responsibility to get you started.

DETECTING

1. Auditors are required to discuss the susceptibility of the financial statements to fraud and how the audit will probe those vulnerabilities such as:

- Management's supervision habits
- Unusual changes in lifestyle, attitude, behavior
- Types of circumstances that might signal fraud
- How to introduce some element of unpredictability to the audit
- Procedures that might uncover fraud in areas of vulnerability
- Any allegations of misdeeds, errors, impropriety
- Auditors are required to presume that improper recognition of revenue is a fraud risk

2. Keep an attitude of professional skepticism

o Questioning and critical assessment of evidence
o Believe management only when comments are supported by evidence

3. Look for three conditions ("fraud ...

Solution provided by:
Education
  • BSc, University of Virginia
  • MSc, University of Virginia
  • PhD, Georgia State University
Recent Feedback
  • "hey just wanted to know if you used 0% for the risk free rate and if you didn't if you could adjust it please and thank you "
  • "Thank, this is more clear to me now."
  • "Awesome job! "
  • "ty"
  • "Great Analysis, thank you so much"
Purchase this Solution


Free BrainMass Quizzes
Writing Business Plans

This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.

SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

Learning Lean

This quiz will help you understand the basic concepts of Lean.

Motivation

This tests some key elements of major motivation theories.

Six Sigma for Process Improvement

A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.