Fraud involves an intentional act to deceive, which may result in material misstatement in the financial statements due to fraudulent financial reporting or misappropriation of assets. Management’s responsibility is to design, implement, maintain and monitor a system of internal control to prevent, or detect and correct, fraud. This module will focus on real-life and practical examples of fraud in smaller- and mid-size environments, including nonprofits.
Accountants responsible for advising audit clients on how to prevent or detect fraud, as well as identifying and responding to fraud risk
- Discuss the cause and impact on real-life fraud cases
- Explain what to be alert for in an audit order to identify fraud potential
- Describe required communications to those charged with governance and others
- Discuss the impact of fraud on the auditor’s report
- Fraud trends per the Association of Certified Fraud Examiners (ACFE) Annual Report on Fraud and Abuse
- Real-life examples of fraud in smaller-entity and nonprofit environments.
- Cyber-security risks of fraud
- Responsibilities for communicating abuse on an audit in accordance with Government Auditing Standards
- The impact of known and potential impact of fraud on an auditor’s report
Experience on basic audit engagements