The financial statement auditor’s overall responsibility is to obtain sufficient appropriate audit evidence to provide reasonable assurance as to whether the financial statements are materially misstated due to fraud or error. The difficulty is that there are inherent limitations related to detecting fraud due to deliberate schemes to conceal the intent to deceive, such as collusion. This module will highlight the audit procedures most effective in identifying, assessing, and responding to fraud risk.

Major Topics:

  • Explain the expectation gap with financial statement users regarding the auditor’s responsibilities for preventing and detecting fraud
  • Fraud inquiries and engagement team discussion points
  • Identifying and responding to fraud risk on an audit
  • Testing journal entries and other tests for management override
  • Required fraud and non-compliance communications by various auditing, including communications required by Government
  • Auditing Standards, PCAOB Audit Standards, and International Standards on Auditing
Learning Objectives
  • Explore and explain the various types of fraud relevant to a financial statement audit.
  • Discover and describe the symptoms of fraud and how to identify risk of material misstatement due to fraud.
  • Recognize and explain appropriate responses to identified fraud risk.
  • Identify and discuss the requirements related to fraud and noncompliance in various generally accepted auditing standards.
Last updated/reviewed: August 19, 2023

Included In Certifications

This course is included in the following Certification Programs:

13 CoursesAudit Training Certification - Level 2 - Experienced Staff

  1. Fraud Risk - Complying with Minimum Audit Requirements
  2. Best Practices for Identifying and Evaluating Audit Risk - Linking Risk to the Detailed Audit Plan
  3. Testing Internal Controls - Exploring Strategies for Verifying Operating Effectiveness
  4. Inquiry and Research - Improving Critical Audit Skills
  5. Auditing Investments - Understanding Risks and Procedures for the Most Common Investments
  6. Auditing Accounts Receivable - Focusing Procedures for Testing Existence and Valuation
  7. Auditing Liabilities, Including Long-Term Debt - Addressing the Risks of Completeness, Classification, and Disclosure
  8. Substantive Analytic Procedures - Strengthening Evidence to Satisfy Audit Objectives
  9. Sampling - Avoiding Common Mistakes on Financial Statement and Compliance Audits
  10. Desired Traits of a Star Performer - Visualizing How to Become an Exceptional Staff Auditor
  11. Professional Requirements for Assurance Providers, Including Independence - Understanding Critical Code of Professional Conduct Concepts
  12. Accounting Update - Hot Topics for Preparing Current Period Financial Statements
  13. Auditing & Attest Update - Hot Topics for Current Period Audits and Other Attest Services
9 Reviews (38 ratings)

Reviews

4
Anonymous Author
It was very well structured, well-paced and easy to follow training course. Structuring the course in segments as well as offering a continuous play option is perfect for any learning style. The examples given were good.

5
Anonymous Author
Great course!! Would definitely recommend. Instructor did an excellent job presenting various scenarios and case studies regarding Fraud Risk.

4
Member's Profile
good course, explaining in reasonable detail the fraud risks relating to financial reporting.

4
Anonymous Author
This was a helpful course highlighting many useful tools for spotting fraud risk. Thank you.

5
Anonymous Author
Structured well and provided useful tools to spotting fraud risk. Enjoyed the case studies.

5
Anonymous Author
It is a very interesting topic and the contents are very well presented!

5
Member's Profile
Great course informative and a good basic audit related fraud course.

5
Anonymous Author
Great material with real life examples that describe concepts.

4
Anonymous Author
Good overall refresher with some good tips throughout.

Prerequisites
Course Complexity: Intermediate

No advanced preparation or prerequisites are required for this course.
Designed For: Accountants who have responsibility for identifying, assessing, and responding to fraud risk on a financial statement audit.

Education Provider Information
Company: Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact: For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Instructor for this course
Course Syllabus
INTRODUCTION AND OVERVIEW
  Learning Objectives for Fraud Risk1:12
  Overview of Responsibilities14:10
  Fraud Inquiries11:20
  Engagement Team Discussion7:42
  Fraud Triangle8:02
  Case Study - Applying Fraud Triangle10:56
  Addressing Risk of Management Override15:44
  Fraud Analytics and Responses to Fraud Risk17:36
  Fraud Related Communication7:26
  Case Study in Applying Fraud Triangle and Designing Response6:48
CONTINUOUS PLAY
  Fraud Risk - Complying with Minimum Audit Requirements1:40:56
SUPPORTING MATERIAL
  Slides: Fraud Risk - Complying with Minimum Audit RequirementsPDF
  Fraud Risk - Complying with Minimum Audit Requirements Glossary/ IndexPDF
REVIEW AND TEST
  REVIEW QUESTIONSquiz
 FINAL EXAMexam