Auditing and Fraud News and Trends

Stay current with auditing and fraud news and trends
By Carol Francois Pay attention to auditing and fraud news and trends to reduce the financial risk to your firm. All financial accounting firms provide auditing services. The purpose of an audit is to test the controls in place and uncover any suspicious transactions that could be the result of accounting fraud.

The techniques and methods used to commit and detect fraud change constantly. Staying informed on fraud methods used by others results in improved internal controls and reduced risk. Follow the three steps below to stay informed on trends in auditing and fraud.

1. Subscribe to auditing services newsletters.

2. Investigate auditing and fraud industry reports.

3. Maintain information on fraud auditing and detection.

Read auditing services publications

Sign up for the regular publications provided to auditing services. These monthly and quarterly newsletters include valuable information on trends, risks and current litigation. Fraud auditing and detection is a complex field with many changes in legislation and high profile cases. Stay up to date to reduce your risk.
Try:  Work with your accounting services firm to stay current on business fraud prevention techniques. Follow news stories on fraud detection services and decide if your firm requires one. Register for Audit Serve or review the publications available from The Institute of Internal Auditors. The most effective way to reduce your risk is to institute business procedures that increase the likelihood of being caught and letting all the staff know.

Review auditing and fraud research

Spend time to review the results of fraud auditing research. This is a very large industry, with a large number of accounting professional specializing in fraud auditing and detection. Keep up to date on the level of activity in this field and discuss these trends with your accounting or auditing firm.
Try:  There are a wide range of fraud auditing tools available. The business audit is a standard process covered in any professional accounting engagement. Fraud magazine is published by the Association of Certified Fraud Examiners, the leading professional group in fraud education for business. Inbox Robot will keep you current and informed on auditing and fraud developments.

Stay current with fraud reports

Write down a list of contacts in law enforcement responsible for conducting an auditing and fraud investigation. Although accounting firms providing auditing services and can give advice on fraud prevention, the actual prosecution and investigation is normally managed by a law enforcement agency.
Try:  The increased use of fraud management software has resulted in more investigations and arrests for accounting fraud. Read the information provided on the FBI website on a regular basis. Subscribe to the newsletters and articles collected by the National White Collar Crime Center to stay vigilant.

• Fraud auditing and detection is essential in any business. The problem is not the quality of the staff you have hired, but the types of controls in place to reduce the chance of accounting fraud.