South Africa has the highest fraud rate globally, with South African companies experiencing more fraud and bribery than their counterparts elsewhere in the world. As such, it is important that, as auditors, we understand the types of fraud that can occur, and when the risk of fraud might be higher, in order to be able to identify the instances in which fraud might occur.
But where does the responsibility of the auditor start, and where does it end?
This course explains the auditors responsibility towards fraud in an audit engagement and independent review. This course focuses on the auditors responsibility towards detecting fraud and the reporting requirements when fraud is suspected or detected. The course includes the auditorresponsibility in terms of the ISAs as well as the responsibility in terms of the auditing professions act with regards to reportable irregularities.
After this session, delegates should understand the concept of fraud and the responsibility of the auditor towards fraud. It should be clear that it is not the auditors responsibility to detect and prevent fraud, but that an audit should be performed in such a way to be able to identify significant fraud.
Delegates should be able to use the fraud risk factors to identify the risks relating to fraud. Finally delegates should know what to do when fraud is detected, how it will influence the audit and what and whom to report to.
What constitutes Fraud and what is the difference between fraud and white collar crime?
Types and examples of fraud
What is the fraud risk triangle and how can auditors use it to determine the risk of fraud
Is it the auditors responsibility to detect fraud?
What is expected from auditors and is this realistic?
Whose responsibility is the detection and prevention of fraud?
The auditors actual responsibility towards fraud
o To obtain an understanding of the entity and the fraud risk factors to plan the audit
o To perform fraud risk assessment
o What are the presumed fraud risks
o To considering laws and regulations
o Documenting the fraud risk assessment
How can the auditor respond to the risks of fraud?
o Overall responses the auditor can implement
o Responses over significant risks
What if fraud is detected?
o What happens if I can't continue the engagement?
o Who does the auditor need to report to?
Reporting requirements i.r.o. section 45 of the Reportable Irregularity
Reporting requirements i.r.o. regulation 29 of the Companies Act Reportable Irregularities in an independent review
o How does this differ from the reporting responsibility in section 45 of the APA
o What is insolvency and what is reckless trading
Communicating with those charged with governance
How will this affect my audit report?
This session will be on an intermediate level and all employees within an engagement team, regardless of their level will find this beneficial.
