SESSION 2: Responding to Fraud: Investigation, Reporting & AI-Powered Detection Tools
This advanced session builds on ISA 240 by focusing on audit responses when fraud is suspected or identified. It equips auditors with practical investigation steps, documentation techniques and mandatory reporting duties under the Auditing Profession Act. It also introduces modern AI and IT tools for fraud detection and data analytics in audits.
Participants learn practical fraud response strategies, including modifying audit procedures, gathering evidence, documenting findings and escalating concerns. The session explains reporting obligations to management, those charged with governance and regulators. It covers reportable irregularities to IRBA, whistleblowing protocols and how AI-powered tools like data analytics and anomaly detection assist in fraud investigation.
Key Topics Covered:
• Responding to identified or suspected fraud
• Modifying audit procedures and gathering evidence
• Documentation of fraud-related findings
• Reporting fraud to governance structures
• Legal duties: Reportable Irregularities under the APA
• Fraud communication protocols
• Using AI and data analytics to detect anomalies
• IT audit techniques for fraud testing
• Cyber fraud investigations – practical case examples
• Ethical responsibility and public interest mandate
• Audit managers and partners
• Forensic audit teams
• Internal audit leaders
• Risk and compliance officers
• IT auditors and data analysts
• Professional accountants in public practice
