How to Audit for Fraud

3 Credits: Auditing


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How to Audit for Fraud

Course Level
CPE Credits

3 Credits: Auditing

Course Description

How to Audit for Fraud is an essential course for auditors seeking to enhance their expertise in fraud detection and prevention. This course offers a thorough understanding of the auditor’s role in identifying fraud, covering the components of the fraud triangle and the responsibility for fraud prevention. Participants will learn about various scams used to inflate sales, methods for manipulating financial statements, and tactics for covering up fraudulent activities. Beyond theory, the course provides practical techniques for detecting fraudulent journal entries, altering documents, and tracking cash theft. It also equips auditors with the skills to navigate complex situations like recognizing the pressure on clients to falsify financial statements and how to effectively communicate fraud findings. This course is not just about learning the principles of fraud detection; it’s about applying them in real-world scenarios, enhancing your capabilities as an auditor in identifying and addressing fraud.

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Learning Objectives

Upon successful completion of this course, participants will be able to:

Chapter 1

  • 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.

Chapter 2

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

Chapter 3

  • 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.
  • Note the methods available for tracking down the theft of cash.
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Course Specifics

Course ID
Revision Date
January 3, 2024

There are no prerequisites.

Advanced Preparation


Number of Pages

Compliance Information

NASBA Provider Number: 103220

CFP Notice: Not all courses that qualify for CFP® credit are registered by Western CPE. If a course does not have a CFP registration number in the compliance section, the continuing education will need to be individually reported with the CFP Board. For more information on the reporting process, required documentation, processing fee, etc., contact the CFP Board. CFP Professionals must take each course in it’s entirety, the CFP Board DOES NOT accept partial credits for courses.

Meet The Experts

Steven M. Bragg, CPA, is a full-time book and course author who has written more than 300 business books and courses. He provides Western CPE with self-study courses in the areas of accounting and finance, with an emphasis on the practical application of accounting standards and management techniques. A sampling of his courses include the The New Controller Guidebook, The GAAP Guidebook, Accountants’ Guidebook, and Closing the Books: An Accountant’s Guide. He also manages the Accounting Best Practices podcast. Steven has been the CFO or controller of both public and private companies and has been a consulting manager with Ernst & Young and …