Programme Objective

Provide audit professionals with guidance on the auditor’s responsibility to consider fraud in an audit of financial statements including the identification and evaluation of red flag indicators of fraud in the audit client and fraudulent misstatement of the financial statements. This course will also touch on various facets of fraud: the different types of fraud, the magnitude, elements and some characteristics of frauds, fraudsters and victims of fraud.

Programme Outline

• The SSA definition of fraud, and the different types of fraud – larceny, misappropriation of assets and fraudulent financial reporting.
• Misstatements due to fraud vs. error – differences in their effects on audit materiality and the assessment of risk in the audit of financial statements.
• The auditor’s responsibility in relation to fraud in the financial statements – planning and performing the audit, fraud risk identification and assessment at both financial statement and assertion level.
• The auditor’s responsibility to consider fraud in an audit of financial statements vs. the auditor’s responsibility in a forensic audit engagement.
• The auditor’s response to assess fraud risks and implications for audit planning, professional skepticism and the design of appropriate audit procedures.
• How to identify and evaluate red flag indicators of fraud in the financial statements.
• Fraud prevention and detection by client management - the roles of internal controls and corporate governance mechanisms within the client company.
• Methods, procedures and tools available for detecting and preventing fraudulent activity.
• Communicating identified/suspected fraud to appropriate levels of management and those charged with governance and regulatory agencies.
• Communicating significant and other deficiencies in internal control to those charged with governance and management.
• The importance of adequate audit documentation of identified/suspected fraud in the audit of financial statements.
• Illustrative examples of fraudulent financial reporting perpetrated in Singapore – case analysis of the fraud triangle (incentive, opportunity and rationalization). 

Training Methodology
Lecture style, with Exercises/Case Studies
 
Closing Date for Registration
1 week before programme or until full enrolment

Intended For

A Foundation to Intermediate level programme suitable for both Practising and Non-Practising Accountants and Auditors. Those who require guidance on the auditor’s responsibility on fraud considerations are welcome to attend.

Programme Facilitator(s)