Last month I introduced the concept of integrating fraud testing in your audit program. The blog discussed the pros and cons of the four approaches and offered advice to the CAEs. This month, I will discuss the four strategies and explain the “how to” for the auditors in the field. I will use a payroll fraud risk statement to illustrate the concepts. Please remember, I consider myself a practitioner first and a blogger second.
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Let’s start out with a question: Is the audit profession doing a better job today than 20 years ago in responding to the risk of fraud in audits?
Various studies indicate that whistle blowers and accidents are still the number one reason for detecting frauds while the audit process is still on the bottom of the list. So, I guess the answer to the question is “no!”
I do not, however, think this is a reflection on the people working in the profession but rather the tools, or lack there of, that auditors are using in the audit.
My marketing team has encouraged me to write about the impact of Covid-19. To an extent, writing about the benefits of fraud auditing in the middle of a world crisis does not seem like the right time or place, but there is a greater potential for fraud during times of upheaval. And, we all have bosses, so here I go." FYI, my May blog will be USA centric, I apologize to my world readers.
In my December 2019 blog I stated “I will provide eleven statements in the spirit of causing you to think about your audit plan and help you create a dialog in your company about improving your ability to find fraud risk statements within your audit.”
The remaining three observations are what I have referred to as the “my statement”. These are my predictions, hopes or my aspirations.
In my December 2019 blog, I provided eleven statements in the spirit of causing you to think about your audit plan and helping you create a dialog in your company about improving your ability to find fraud risk statements within your audit. In January and February and this blog, I’m delving deeper into the issues.
In my December 2019 blog, I provided eleven statements in the spirit of causing you to think about your audit plan and helping you create a dialog in your company about improving your ability to find fraud risk statements within your audit. In last month’s and this blog, I’m delving deeper into the issues.
In my December 2019 blog, I provided eleven statements in the spirit of causing you to think about your audit plan and helping you create a dialog in your company about improving your ability to find fraud risk statements within your audit. In the next four blogs, January – April, I will elaborate on them.
Over the last few weeks, I have had the pleasure of hearing from readers who have uncovered fraud schemes in their companies. This includes two chief auditors who attributed their ability to locate fraud schemes to my lectures or my fraud auditing techniques. I want to thank these individuals for contacting me. It was very kind of them.
Over the last six months, I have traveled the world talking about fraud data analytics. I want to thank everyone who has participated in the sessions. I also want to thank the hundreds of individuals who have signed up to receive our monthly blog newsletter.
