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LEARNING RESOURCES
FINANCIAL REPORTING

Financial Statement Fraud, Corruption, and
Asset Misappropriation — Part 1 and Part 2 The legal
Through narration by an industry subject-matter
expert and practical scenario exercises, this determination of
two-module CPE course identifies the steps of a
financial statement fraud investigation and the
internal controls needed in place to deter and whether fraud has
prevent fraud.

occurred is made by
CPE SELF-STUDY

a judge or jury, not
Fraud Risk Management Guide
This guide provides implementation guidance that
defines principles and points of focus for fraud risk
management and describes how organizations by management and
of various sizes and types can establish their own
fraud risk management program.
not by the auditor.
PUBLICATION

and you have relied upon the testing and findings of
[Data for chart, numbers are in millions] the forensic investigator to support your conclu-
sions on the audit, you should also document your
New Staff: Practical Application — Fraud
Considerations in a GAAS Audit use of a specialist within the binder and include
the report of findings from the forensic specialist.
This CPE course discusses detecting and
responding to fraud and provides an overview of Be sure to note the qualifications of the forensic
the various types of fraud schemes auditors may accountant and the reasons for your reliance upon
encounter. his or her work as you would with other specialists
involved in the audit.
CPE SELF-STUDY
Be sure such documentation is sufficiently
detailed, but, again, do not draw conclusions about
guilt or innocence unless such legal determinations
have already been made by a judge or jury.
Based on the information you have learned,
What Fraud Schemes Exist in Your Organization consider your ability to continue and finalize
This course provides insight into the Business the audit engagement and, relatedly, whether
Fraud Risk Framework and focuses on the most withdrawal from the audit is appropriate given
relevant fraud schemes affecting organizations. the circumstances and considering applicable laws
CPE SELF-STUDY or regulations.
If the audit can indeed be finalized, consider
what improvements can be made to the client’s
internal controls going forward based on the find-
ings of the investigation and audit. A management
letter comment may be necessary.
For more information or to make a purchase, go to aicpa.org/cpe-learning In summary, when suspicions or allegations
or call the Institute at 888-777-7077. of fraud surface during an audit, it is extremely
important to demonstrate a sufficient response to
the situation to support the auditor’s conclusions
on the engagement. Following the authoritative
decisions the auditors made in response to allega- guidance of AU-C Section 240 and considering the
tions or suspicions of fraud under the relevant practical steps and questions in this article will help
provisions of AU-C Section 230, Audit Documenta- auditors respond more confidently if such allega-
tion. If a forensic investigation has been performed tions arise. ■

18 | Journal of Accountancy August 2022