Auditor Responsibility Re: Fraud


Paul J. Sanchez, CPA, CBA, CFSA, CGMA conducts a small CPA practice in Port Washington, New York. He is also the owner of Professional Service Associates (PSA), a consulting and professional training and development business servicing corporate clients (auditors, controllers, etc.), CPA firms, professional associations and others. He was an assistant professor at Long Island University - C.W. Post Campus as well as an adjunct lecturer at City University of New York. Prior to starting PSA, he was the Vice President-Professional Development for the Audit Division of a regional bank and Director of Professional Practices and Vice President of a money-center bank, where he directed the professional practice development and training for internal auditors. He also was on the technical staff of the Auditing Standards and Examinations Divisions of the AICPA. He practiced public accounting in the New York office of Deloitte where he also was a firm recruiter and in-house professional development instructor. He was an owner and auditing and accounting seminar leader for the Person/Wolinsky CPA Review Courses, a company that prepared candidates to pass the Uniform CPA Examination. He is a frequent lecturer and seminar leader for accounting, auditing, banking, risk assessment and other professional presentations. He is the author of the textbook, “Accounting Basics for Community Financial Institutions” (Financial Managers Society, 2nd edition, Chicago, 2009) and the “Ideas an Analysis Letter: The Sanchez Take” (see www.sanchez-psa.com). As a contributing author, his chapter on ‘An Auditor’s Approach to Risk-Based Auditing: What to Audit and When,’ is included in the textbook, “Effective Auditing for Corporates: Key Developments in Practice and Procedures,” (Bloomsbury Information, Ltd, London, 2012).

This webinar focuses on fraud in the corporate environment. It reiterates some of the authoritative CPA literature related to fraud. It is, however, equally important to non-CPAs (e.g. internal auditors, corporate departmental managers, senior management, board members). It provides a basic understanding of fraud related definitions and requirements. In particular, it separates the fraud discussion between: 

  1. Fraudulent financial reporting (“cook-the-books” type frauds)
  2. Misappropriation of assets (traditional fraud involving embezzlement, kickbacks, stealing assets, using corporate cash for non-corporate expenses)

It also helps participants identify business risks, assess those risks, and develop a response to the fraud risk assessment. It also focuses on and explains typical frauds and provides checklists, questionnaires and other tools to help audit or review for fraud.

This webinar is an excellent overview of the entire fraud situation and in particular the auditor's responsibility re fraud.

Fraud is a reality for all entities. Whether perpetrated by insiders or outsiders it could be occurring at a material level. Corporate management charged with the responsibility for good internal controls must consider the possibility of fraud. Auditors (external and internal) must also consider, identify and assess fraud risk threats. In recent years the old misappropriation of assets type frauds has given way to the new frauds – fraudulent financial reporting. The latter represents the “cooking” of the books (for example, manipulate the books to generate higher earnings for bonus purposes).

Learning Objectives

  • What is fraud
  • What is a fraud risk
  • What is fraudulent financial reporting 
  • What is a misappropriation of assets
  • What are examples of fraud risk factors
  • What is the difference between potential fraud and actual fraud 
  • How is fraud risk identified and assessed 
  • How is fraud risk evaluated 
  • What are some typical frauds

Who Should Attend

  • Internal auditors – all levels
  • External auditors – all levels
  • Department and senior management 
  • Risk analysts 
  • Selected board members
  • $200.00