Certified Financial PlannerChartered Accountant

Tax Advisory Consultant Corporate Finance Accounting Firm

Audit Procedures to Detect Fraud

Fraud Brainstorming SessionA fraud brainstorming session at the beginning of the audit is heldThis session provides time to the audit team to decide how the fraud took place in the company  The brainstorming meeting is held The fraud specialist attends the meeting and reveals different types of frauds committed by the companies This helps the client to identify the risk factors

Journal Entry Testing

For checking the signs of manipulation, the company's journal entries are checked because committing a fraud of the financial statement requires adjustments to the financial records of the company

Auditors typically select the following entries

Large entries made by the management

Late entries in the accounting period

supporting documentation that validates each entry is asked for

Accounting Estimates

Since accounting estimates are subjective, therefore, influencing accounting estimates to manipulate the financial statements is possible and hence the directionality of the estimates as a whole is examined

Significant Unusual Transactions

Significant unusual transactions outside of a company's normal business operations are closely examined by the auditors

The explanation from the management is asked for

Corporate Office Address

AKGVG & AssociatesChartered Accountant, Tax Advisory Consultant and Accounting Firm 307 Pearl Corporate, Mangalam Place,Sector-3, Rohini, New Delhi, India - 110085Contact No - +91- 9811118031Email ID - info@akgvg.comWebsite - http://www.akgvg.com

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