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.
DISCLAIMER & TERMS OF USE
Educational Aid: These study notes are intended to be used as educational resources and should not be seen as a
replacement for individual research, critical analysis, or professional consultation. Students are encouraged to perform
their own research and seek advice from their instructors or academic advisors for specific assignment guidelines.
Personal Responsibility: While every effort has been made to ensure the accuracy and reliability of the information in
these study notes, the seller does not guarantee the completeness or correctness of all content. The buyer is
responsible for verifying the accuracy of the information and exercising their own judgment when applying it to their
assignments.
Academic Integrity: It is essential for students to maintain academic integrity and follow their institution's policies
regarding plagiarism, citation, and referencing. These study notes should be used as learning tools and sources of
inspiration. Any direct reproduction of the content without proper citation and acknowledgment may be considered
academic misconduct.
Limited Liability: The seller shall not be liable for any direct or indirect damages, losses, or consequences arising from
the use of these notes. This includes, but is not limited to, poor academic performance, penalties, or any other negative
consequences resulting from the application or misuse of the information provided.
, For additional support +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.
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.
DISCLAIMER & TERMS OF USE
Educational Aid: These study notes are intended to be used as educational resources and should not be seen as a
replacement for individual research, critical analysis, or professional consultation. Students are encouraged to perform
their own research and seek advice from their instructors or academic advisors for specific assignment guidelines.
Personal Responsibility: While every effort has been made to ensure the accuracy and reliability of the information in
these study notes, the seller does not guarantee the completeness or correctness of all content. The buyer is
responsible for verifying the accuracy of the information and exercising their own judgment when applying it to their
assignments.
Academic Integrity: It is essential for students to maintain academic integrity and follow their institution's policies
regarding plagiarism, citation, and referencing. These study notes should be used as learning tools and sources of
inspiration. Any direct reproduction of the content without proper citation and acknowledgment may be considered
academic misconduct.
Limited Liability: The seller shall not be liable for any direct or indirect damages, losses, or consequences arising from
the use of these notes. This includes, but is not limited to, poor academic performance, penalties, or any other negative
consequences resulting from the application or misuse of the information provided.
, For additional support +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.
