Week 1 Discussion Question

1. Describe how fraud examination differ from auditing

There are many differences between fraud examination and auditing which are timing, the scope, their objectives, the relationship between them, their methodology and the presumptions. The timing difference between fraud and auditing is that auditing is recurring which means that they keep going on a daily basis, while the fraud examinations is nonrecurring which means that they do not keep happening over and over on a daily basis. With the scope auditing they use a general examination of any financial data, while the fraud examination has a specific scope which has specific criteria that has to be met. The objective of the auditing is the opinion in which is an expression on the financial statements or other types of information while fraud examination is affix blame which is if a fraud has actual occurred and if it has who committed the fraud then they could blame on someone. The relationship of auditing is nonadversarial which means that it does not go into blaming an individual, while the fraud examination is adversarial which deals with the blaming of individuals. The methodology of auditing is audit techniques which means they are responsible for looking over the financial data, while the fraud examination has its own techniques by reviewing the documents, review any records, and interviews that needed to examined. The presumption for auditing is professional skepticism which means to take a professional look at the audits, while the fraud examination have proof that helps support any evidence of the fraud that happened.

2. List and describe the steps involved in the fraud theory approach.

The steps that are involved in the fraud theory approach are analyze available data, create a hypothesis, test the hypothesis, and refine the hypothesis. Analyze available data is when the fraud examiner looks over any and all of the information that they receive in order to approach the fraud activity at hand....