Assessing the Risk of Fraud In a Financial Statement Audit

Description

The Association of Certified Fraud Examiners says that there is fraud lurking in all businesses including not for profit organizations. It often goes undetected for years and when uncovered, management and the board may question why the auditor did not identify it. The auditor's responsibility in a financial statement audit is to assess risk and perform sufficient procedures to obtain reasonable assurance that the financial statements are free from material misstatement due to fraud or error. However, failure to perform an adequate fraud risk assessment and report deficiencies in internal control, such as lack of segregation of duties can leave a firm vulnerable. This course will discuss the audit procedures that should be performed in accordance AU-240 as recently amended, best practices in performing fraud risk assessment procedures, when and how to report control deficiencies noted in an audit and the most frequent types of fraud found in small to mid-size entities along with internal controls that could be implemented to help prevent and detect them. We will take a look at various cyber fraud schemes and how they might be prevented/detected, at the use of analytics as fraud risk procedures, and at assessing the risk of fraud in a Single Audit. This course features case studies.

Highlights

Fraud landscape in the United States Fraud risk procedures as updated by recently issued standards Most likely fraud types found in small to midsize entities Internal controls to prevent and detect fraud What to do when fraud or suspected fraud is identified Case studies based on recent frauds Cyber fraud schemes and how to prevent/detect them Analytics that can be used as fraud risk procedures Assessing the risk of grant fraud in a Single Audit

Objectives

Understand the drivers of fraud risk in a financial statement audit Conduct procedures required by professional literature to assess the risk of fraud Develop discussion points to review with management and those charged with governance Identify the main types of fraud that occur in small to mid-size companies and develop internal controls to be responsive to those risks Evaluate fraud case examples and identify how fraud occurred and how it could have been prevented or detected

Designed For

CPAs in either public or private practice with accounting, financial reporting, or attest responsibilities



Leaders

Carl Shultz

Carl Shultz is an MBA, CPA, and CGMA. He has extensive experience serving as a financial executive with Fortune 500 companies and “Big Four” public accounting firms; consulting for small-to-large companies and individuals; and leading a range of accounting and financial functions. Carl has played a key role in building new companies and key financial functions to improve net income, install controls, audit functions, and manage large complex projects to successful, timely completion on or under budget. Currently, Carl provides financial and tax preparation and planning to individuals and small businesses. He is also Managing Director of CFS Consulting, LTD, which provides financial, internal control, and administrative consulting services.

He is an adjunct professor of accounting at Rider University and Philadelphia University. Carl has also lectured at professional seminars and to groups on financial accounting and tax matters. He has published in such professional journals as Taxation for Accountants, Taxation for Lawyers, and Controller’s Quarterly.

Carl is a graduate of La Salle University with a degree in Accounting, and has also earned an MBA degree from Drexel University in Finance and Accounting. Carl is a decorated veteran of the Vietnam War, where he served as an officer in the U.S. Army.