FOR2601
Assignment 1 Semester 1 2026
Unique number:
Due Date: March 2026
QUESTION 1
1.1 Detection techniques used by auditors to detect fraud in an organisation (10
marks)
Auditors use a range of detection techniques to identify fraud in an organisation. These
techniques help them to examine different areas of business operations and relationships
where fraud is most likely to occur.
One important technique is analytical review procedures. Auditors compare financial
information over time or against expected trends to identify unusual patterns. For example,
sudden increases in expenses or unexplained losses may indicate fraudulent activity.
Another technique is inspection of documents and records. Auditors carefully examine
invoices, receipts, contracts and financial statements to identify inconsistencies such as
false invoices, double payments or altered records. This is especially useful in detecting
fraud involving suppliers, employees or management.
Terms of use
By making use of this document you agree to:
Use this document as a guide for learning, comparison and reference purpose,
Terms of use
Not to duplicate, reproduce and/or misrepresent the contents of this document as your own work,
By making use of this document you agree to:
Use this document
Fully accept the consequences
solely as a guide forshould you plagiarise
learning, reference,or and
misuse this document.
comparison purposes,
Ensure originality of your own work, and fully accept the consequences should you plagiarise or misuse this document.
Comply with all relevant standards, guidelines, regulations, and legislation governing academic and written work.
Disclaimer
Great care has been taken in the preparation of this document; however, the contents are provided "as is" without any express or
implied representations or warranties. The author accepts no responsibility or liability for any actions taken based on the
information contained within this document. This document is intended solely for comparison, research, and reference purposes.
Reproduction, resale, or transmission of any part of this document, in any form or by any means, is strictly prohibited.
, +27 81 278 3372
QUESTION 1
1.1 Detection techniques used by auditors to detect fraud in an organisation (10
marks)
Auditors use a range of detection techniques to identify fraud in an organisation. These
techniques help them to examine different areas of business operations and relationships
where fraud is most likely to occur.
One important technique is analytical review procedures. Auditors compare financial
information over time or against expected trends to identify unusual patterns. For example,
sudden increases in expenses or unexplained losses may indicate fraudulent activity.
Another technique is inspection of documents and records. Auditors carefully examine
invoices, receipts, contracts and financial statements to identify inconsistencies such as
false invoices, double payments or altered records. This is especially useful in detecting
fraud involving suppliers, employees or management.
Observation and physical verification is also used. Auditors may physically check
assets such as stock or equipment to confirm that they exist. This helps to detect theft of
company assets or false reporting of inventory.
Auditors also rely on inquiries and interviews. They ask questions to employees,
management and third parties to gather information. This technique helps uncover fraud
such as employee theft, corruption or false claims.
Another key technique is data analysis and computer-assisted auditing tools. These
tools allow auditors to analyse large volumes of data to detect patterns such as duplicate
payments, suspicious transactions or irregular customer behaviour, including credit card
fraud or identity fraud.
Auditors also assess internal controls within the organisation. Weak controls may allow
fraud to occur, for example in areas like procurement, payroll or financial reporting.
1.2 Basic considerations or tactical steps when starting a new investigation (10
marks)
Disclaimer
Great care has been taken in the preparation of this document; however, the contents are provided "as is"
without any express or implied representations or warranties. The author accepts no responsibility or
liability for any actions taken based on the information contained within this document. This document is
intended solely for comparison, research, and reference purposes. Reproduction, resale, or transmission
of any part of this document, in any form or by any means, is strictly prohibited.
Assignment 1 Semester 1 2026
Unique number:
Due Date: March 2026
QUESTION 1
1.1 Detection techniques used by auditors to detect fraud in an organisation (10
marks)
Auditors use a range of detection techniques to identify fraud in an organisation. These
techniques help them to examine different areas of business operations and relationships
where fraud is most likely to occur.
One important technique is analytical review procedures. Auditors compare financial
information over time or against expected trends to identify unusual patterns. For example,
sudden increases in expenses or unexplained losses may indicate fraudulent activity.
Another technique is inspection of documents and records. Auditors carefully examine
invoices, receipts, contracts and financial statements to identify inconsistencies such as
false invoices, double payments or altered records. This is especially useful in detecting
fraud involving suppliers, employees or management.
Terms of use
By making use of this document you agree to:
Use this document as a guide for learning, comparison and reference purpose,
Terms of use
Not to duplicate, reproduce and/or misrepresent the contents of this document as your own work,
By making use of this document you agree to:
Use this document
Fully accept the consequences
solely as a guide forshould you plagiarise
learning, reference,or and
misuse this document.
comparison purposes,
Ensure originality of your own work, and fully accept the consequences should you plagiarise or misuse this document.
Comply with all relevant standards, guidelines, regulations, and legislation governing academic and written work.
Disclaimer
Great care has been taken in the preparation of this document; however, the contents are provided "as is" without any express or
implied representations or warranties. The author accepts no responsibility or liability for any actions taken based on the
information contained within this document. This document is intended solely for comparison, research, and reference purposes.
Reproduction, resale, or transmission of any part of this document, in any form or by any means, is strictly prohibited.
, +27 81 278 3372
QUESTION 1
1.1 Detection techniques used by auditors to detect fraud in an organisation (10
marks)
Auditors use a range of detection techniques to identify fraud in an organisation. These
techniques help them to examine different areas of business operations and relationships
where fraud is most likely to occur.
One important technique is analytical review procedures. Auditors compare financial
information over time or against expected trends to identify unusual patterns. For example,
sudden increases in expenses or unexplained losses may indicate fraudulent activity.
Another technique is inspection of documents and records. Auditors carefully examine
invoices, receipts, contracts and financial statements to identify inconsistencies such as
false invoices, double payments or altered records. This is especially useful in detecting
fraud involving suppliers, employees or management.
Observation and physical verification is also used. Auditors may physically check
assets such as stock or equipment to confirm that they exist. This helps to detect theft of
company assets or false reporting of inventory.
Auditors also rely on inquiries and interviews. They ask questions to employees,
management and third parties to gather information. This technique helps uncover fraud
such as employee theft, corruption or false claims.
Another key technique is data analysis and computer-assisted auditing tools. These
tools allow auditors to analyse large volumes of data to detect patterns such as duplicate
payments, suspicious transactions or irregular customer behaviour, including credit card
fraud or identity fraud.
Auditors also assess internal controls within the organisation. Weak controls may allow
fraud to occur, for example in areas like procurement, payroll or financial reporting.
1.2 Basic considerations or tactical steps when starting a new investigation (10
marks)
Disclaimer
Great care has been taken in the preparation of this document; however, the contents are provided "as is"
without any express or implied representations or warranties. The author accepts no responsibility or
liability for any actions taken based on the information contained within this document. This document is
intended solely for comparison, research, and reference purposes. Reproduction, resale, or transmission
of any part of this document, in any form or by any means, is strictly prohibited.
