Fraud Flashcards
During the planning phase of an audit, what things should an auditor do to assess the risks of fraud occurring?
The team should get together and discuss fraud risks
Incentive or pressure to commit fraud
Opportunity for fraud to occur
Rationalization to commit the fraud
Gather information and assess information to identify risks of fraud
Evaluate the entities programs and controls
Maintain an attitude of professional skepticism in assessing risks
Design procedures to provide reasonable assurance of detecting such fraud
Document the auditor’s consideration of fraud
What might be some warning signs that fraud might be present in an organization?
Poor internal controls
Unethical leadership
Lack of conflict of interest rules
Fiscal problems
Complicated and unclear accounting records
