Audit - 2577 Words

Fraud Auditing and Different type of fraud Introduction Over the years, the role of auditors become increasingly important especially in a capitalist economy as the process of wealth creation and political stability depends heavily upon confidence in processes of accountability and how well the expected roles are being fulfilled. An auditor has the responsibility for the prevention, detection and reporting of fraud, other illegal acts and errors is one of the most controversial issues in auditing. The most frequently debated areas amongst auditors, politicians, media, regulators and the public is where the fraud is coming from and by whom. This disagreement has been especially tinted by the collapse of big corporations like Enron and†¦show more content†¦First, there is an incentive or pressure that provides a reason to commit fraud. Second, there is an opportunity for fraud to be perpetrated (e.g. absence of controls, ineffective controls, or the ability of management to override controls.) Third, the individuals committing the fraud possess an attitude that enables them to rationalize the fraud. (http://en.wikipedia.org/wiki/SAS_99) As we know fraud is more likely to be committed by a single individual, without a prior history of fraud, who often raises a red flag because they are living beyond their means and are experiencing financial difficulties. The reasons for fraud are not always obvious to the business owner or even their attorneys. However, what is obvious is that it is often overlooked, ignored, and even undetected. An Analysis of the Fraud Triangle Abstract The concept of a â€Å"Fraud Triangle† is introduced to the professional literature in SAS No. 99, Consideration of Fraud in a Financial Statement Audit. The Fraud Triangle consists of three conditions generally present when fraud occurs: Incentive/Pressure, Opportunity, and Attitude/ Rationalizations. Input from forensic experts, academics and others consistently show that evaluation of information about fraud is enhanced when auditors evaluate in the context of these three conditions. To examine the impact of the fraud triangle on the audit process, this paper develops an evidentialShow MoreRelatedAudit Analysis : Audit And Audit1188 Words   |  5 PagesIntroduction In the early days of independence the audit, audit methods are for the detailed audit approach which is using the accounting books of the audited entity to verify case by case basis, and for the purpose of exposing the wrong check fraud; With the expansion of enterprise scale and complex business activities, audit sampling appears that, according to accounting statements balance and accounting data sample extraction section, and then inferring the overall result of the review. ThisRead MoreAudit Methodology For A Audit Essay1135 Words   |  5 PagesAudit methodology The audit methodology will be used as a step by step guideline that will be used by the auditors to keep track of their progress and enable them to ensure that quality standards are maintained during the auditing phase. To audit the International Bank of Africa information system we will go through five phases or steps. Step one: Planning The first phase will determine the sort of audit team that will be assembled. The team selected will be best placed to handle all obstacles andRead MoreProject Audit : The Audit1717 Words   |  7 PagesAs noted by Meredith and Mantel (2012) â€Å"The audit life cycle includes audit initiation, project baseline deï ¬ nition, establishing a database, preliminary project analysis, report preparation, and termination† (p. 539). We are going to define what happens in each stage of the audit life cycle: 1. Project audit initiation: This step defines the purpose and the scope of the audit, determines the proper audit methodology to use. 2. Project baseline definition: This step will determine which areas of theRead MorePlanning An Audit And Audit Essay2003 Words   |  9 Pages 1. 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Notably, external audit is guided by various standards, which require financial information to be prepared in a specific way as stipulated by variousRead MoreExternal Audit And Non Audit Services Essay1144 Words   |  5 PagesExternal Audit and Non-Audit Services Introduction An external auditor carry out the audit workï ¼Å'according to particular rules or laws of the financial statement corporation, government agencies, other juridical entity, as well as the independent implementation of the audit commissioned. External audit is actually an important systematic inspection, which aim at false behavior within the enterprise and deceptive behavior. The advantage of external audit is to ensure the fairness and independence ofRead MoreAudit Activity, Audit, And Agency Theory1249 Words   |  5 Pagespapers about audit activity, audit price and agency theory. This short paper will provide a brief review focus on whether agency theory provides a general framework for audit pricing majorly refer to the study by Nikkinen and Sahlstron (2004). Furthermore, this is short paper also try to make further discussion from personal perspective. Literature review The purpose of Nikkinen and Sahlstron (2004) study is to ‘investigate whether agency theory provides a general framework for audit pricing.’ ThroughRead MoreAudit Planning1594 Words   |  7 PagesINTRODUCTION Audit Planning and reporting ï  ¬Auditing planning and reporting are two critical stages in whole audit Cycle. ï  ¬Audit planning is before beginning of field work and reporting is last Stage in bank audit ï  ¬Good planning leads to effective Reporting Planning (also called forethought) is the process of thinking about and organizing the desired activities required to achieve a desired goal. Planning involves the creation and maintenance of a PLAN. As suchlt; planning isRead MoreThe Ethics Of The Audit1632 Words   |  7 Pagesenvironment goes down, the rate of auditor litigation has increased. Lawsuits are a continuous threat to the auditing line of work. In this paper, we present evidence on lawsuits having a positive effect on auditors audit liabilities. It is the auditors’ responsibility to plan and complete the audit to obtain practical guarantee about if the financial statements are free of material misstatement or if they are caused by error or fraud. A mixture of court decisions and economic state of affairs has shaped