How to Audit for Fraud (CPE Course)

CPE Credit: 3 hours

Course Type: Downloaded PDF materials with online test

Price (with PDF Textbook): $35

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Course Description
This course shows the auditor how to detect fraud. It does so by discussing fraud risk indicators and other clues indicating the presence of fraud, and itemizes the many extended audit procedures that can be used to detect traces of fraud. The course also notes who is responsible for fraud prevention and detection, and covers the different ways in which financial statements can be fraudulently misstated.
Note: This course shares some material with the Fraud Examination and Fraud Schemes courses.

Author: Steven Bragg

Course Number: AU1012

Table of Contents
Chapter 1. Fraud and the Auditor's Role
Chapter 2. Fraudulent Financial Reporting
Chapter 3. Extended Audit Procedures

Learning Objectives

  • Recognize the components of the fraud triangle.

  • Recognize who is responsible for fraud prevention and detection.

  • Understand the reasons for professional skepticism in the conduct of an audit for fraud.

  • Describe how to communicate to the client a discovery of fraud.

  • Recognize the situations that create pressure for a client to falsify its financial statements.

  • Specify the different types of scams that can be used to inflate the reported level of sales.

  • Describe how to alter the outcome of the receivables turnover measurement.

  • Cite the circumstances under which a client would want to recognize a large loss reserve.

  • Recognize the methods that can be used to shift expenses into a later period.

  • Cite the ways in which liabilities can be artificially lowered.

  • Specify the primary goal of mis-reporting cash flows in the statement of cash flows.

  • Describe the most appropriate audit team staffing when fraud is suspected.

  • Recognize the characteristics of a fraudulent journal entry.

  • Describe the techniques that can be used to alter a document to cover up a fraud.

  • Specify the methods available for tracking down the theft of cash.

Level: Overview

Instructional Method: QAS Self-Study

NASBA Category: Auditing

Prerequisites: None

Advance Preparation: None

Latest Review Date: November 2023

Program Registration Requirements: Click on "Purchase Course" near the top of this page to pay for and access the course. You will then be able to download the course as a PDF file, then take an on-line examination, and then download a certificate of completion if you pass the examination.

Program Refund Policy: For more information regarding administrative policies concerning complaints, refunds, and other matters, see our policies page.

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AccountingTools, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have the final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.

The NASBA sponsor identification number for Accountingtools, Inc. is 115881.

AccountingTools is an IRS Approved Continuing Education Provider. We are compliant with the requirements for continuing education providers (as described in sections 10.6 and 10.9 of the Department of Treasury’s Circular No. 230 and in other IRS guidance, forms, and instructions). Our IRS Approved Continuing Education Provider number is 72821.