Detection and prevention of errors and frauds. What are the steps taken by an auditor in discharging this main function?

Agreed with Waleed and Ayman.

The Auditor's role with respect to detection of errors and fraud is to ensure the following:

1. The assessment and identification of residual and inherent risk, control measures and mitigation of risk measures are in place (Compliance Assurance Program).

2. The effectiveness and relevance of Assurance, Detection and Monitoring management tools.

3. Suggest to change the processes in order to strengthen the controls to avoid errors and frauds.

4. Support the fraud and investigation team in identification, assessment, investigation and monitoring of suspicious transactions and review the submission of STRs.

The root cause of every issue is present at its origin. Simply errors and frauds have a strong likelihood to start from within the organization. So here starts the role of internal auditors and internal control managers. Now, the question arises how internal controls help in discharging errors and fraud. So, there are several steps to eradicate them, but a few of them are:

1. Implement and strengthen physical controls in an organization - The importance of implementing physical controls in fraud prevention is often overlooked by many, but they offer a physical barrier during internal frauds, which eventually grow stronger to affect external matters as well.

2. Develop Preventive and Detective Internal Controls - Preventive controls act as a barrier in the occurrence of fraud, while detective measures reveal inconsistency, error or suspicious circumstances.

3. Introduce Fraud Awareness Programs within organizations - Fraud awareness creates whistle blowers in organizations which help companies to minimize the risk of fraud and errors.

The auditor's responsibility for error or manipulation of discovery

Must distinguish between errors and manipulation where mistakes are intended as a deficit accounting records disclose what

Actually happened unintentionally while manipulation and deception, fraud means adopted for achieving personal benefits generally is

Just result in damage to the rights and interests of others

The embezzlement is defined as a person's takeover of the money found in his possession and under his intent

Altof0

And falls embezzlement and manipulation in the field of accounting and auditing under paragraph fraud and known fraud in the field

Audit (deliberate distortions of the financial statements) The International Auditing Standards defines the intended fraud offenses

Which one or more members of the Board of Directors, staff or Foreigh0 parties to participate

Fraud may include: -

1. falsification or distortion or change records and documents

2. misappropriation of assets

3. Delete ta or results of operations of the records or documents

4. Registration fake process

5. lack of proper accounting policy link

Examples of errors

A book or in the accounting records and accounting information errors

  Lack of proper understanding of the facts or overlooked

(C) lack of proper application of accounting policies

The administration is responsible for the prevention and detection of fraud and errors through continuous follow-up and implementation

An adequate system of internal control note that such a system does not diminish completely eliminates the possibility of errors or

Cteal0

The audit of the facility that involves the study of business and systems in place to carry out operations of a financial significance and the method of control, supervision and examination of records where the accounting entries, as well as documents and closing accounts and verification of assets and liabilities and any data or other financial statements extracted them with a view to verifying that the accounting business established by the Review or provided by the testimony of the references correctly represent what is indicated for the financial entity's operations or results or facts related or financial position right represented, without any exaggeration or omission demonstrates this definition that the audit may be partial any review of a particular part only, of the work, whether this part of the its ordinary or special non-recurring

Agreed with the answer, Mr. Ayman Mohammed Atef

 agree with answers

AGREE WITH ALL ANSWERS