Thirteen principles of fraud audit;
Regarding the fraud audit, there are thirteen principles that somehow reveal its differences with the financial audit. These principles are as follows:
1- The main difference between fraud audit and financial statement audit is more in the way of thinking and perspective than the work method.
2- The focus of fraud auditors’ work is to emphasize exceptions, unusual cases, accounting violations, and behavioral patterns rather than paying attention to errors and omissions.
3- The main basis of training in fraud detection audit is experience, not books and audit texts, training in this field is like the auditor thinking like a criminal what is the weakest link in the internal control system of the employer.
4- From the perspective of auditing financial statements, the deliberate misrepresentation of financial events is important. But from the perspective of fraud auditing, the deliberate misrepresentation of all financial events is even insignificant.
5- Fraud is done with economic motives, self-perception, mental and psychological beliefs.
6- Structured theories of fraud include motivation, opportunity and interests.
7- Fraud in the computer accounting environment can be done at any level of input or input, output, processing and output.
8- The most common areas of fraud in low-level employees are related to payments (debts, salaries and claims related to costs and benefits).
9- The most common areas of fraud at the level of high-level managers are related to profit smoothing.
10- Accounting frauds often originate from the lack of internal controls.
11- The losses caused by frauds move faster than the growth of the number of frauds.
12- Accidental detection of frauds is more frequent than detection of frauds with audit techniques.
13- In order to prevent fraud, as much as proper internal controls are necessary, at the same time, there is a need for a work environment in which the honesty of employees and mutual trust between them are valued.
Mehdi Koh Soltani (financial services, accounting, financial and tax consultant):
Group of accountants, auditors, Tabriz
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