Assessing the Risk of Fraud in a Financial Statement Audit

Assessing the Risk of Fraud in a Financial Statement Audit

Assessing the Risk of Fraud in a Financial Statement Audit


Kenneth Levine, Retired Partner, BDO USA, LLP


The Association of Certified Fraud Examiners says there is fraud lurking in all businesses, including not-for-profit organizations. It often goes undetected for years, and when uncovered, management and the board may question why an auditor did not identify it. The auditor's responsibility in a financial statement audit is to assess risk and perform sufficient procedures to obtain reasonable assurance that the financial statements are free from material misstatement due to fraud or error. However, failure to perform an adequate fraud-risk assessment and report deficiencies in internal control, such as a lack of segregation of duties, can leave a firm vulnerable. This course will discuss the audit procedures that should be performed in accordance with AU-C §240 as recently amended, best practices in performing fraud-risk assessment procedures, when and how to report control deficiencies noted in an audit, and the most frequent types of fraud found in small to mid-sized entities along with internal controls that could be implemented to help prevent and detect them. We will look at various cyberfraud schemes and how they might be prevented or detected, the use of analytics as fraud-risk procedures, and assessments of fraud risk in a Single Audit. This course features case studies.

Learning Objectives:

  • Understand the drivers of fraud risk in a financial statement audit.
  • Conduct procedures required by professional literature to assess the risk of fraud.
  • Develop discussion points to review with management and those charged with governance.
  • Identify the main types of fraud that occur in small to mid-sized companies, and develop internal controls responsive to those risks.
  • Evaluate fraud case examples, and identify how fraud occurred and how it could have been prevented or detected.

Major Topics: 
  • The fraud landscape in the United States
  • Fraud-risk procedures as updated by recently issued standards
  • Most likely fraud types found in small to mid-sized entities
  • Internal controls to prevent and detect fraud
  • What to do when fraud is identified or suspected
  • Case studies based on recent frauds
  • Cyberfraud schemes and how to prevent and detect them
  • Analytics that can be used as fraud-risk procedures
  • Assessing the risk of grant fraud in a Single Audit

8.0 CPE Credits


Registration is open through 09/09. Register by 08/09 for Early Bird Pricing.

Member Price

$379 / $329 Early-Bird pricing ends on 08/09/2024.

Nonmember Price

$479 / $429 Early-Bird pricing ends on 08/09/2024.

  • Retired, Part-time, Unemployed and Leave-of-Absence Members save an additional $50

Monday, September 9

8:30am to 4:00pm (Check-In 8:00am)

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WICPA Professional Development Center

W233N2080 Ridgeview Pkwy Ste 201
Waukesha, WI 53188

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