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Chapter eight
Auditor responsibilities regarding electronic and traditional fraud.
In this chapter we will cover the following points
a. The definition of fraud
b. Difference between fraud and errors
c. Types of fraud
d. Auditing standards related to fraud
e. Auditor responsibilities regarding fraud
f. Conditions for fraud to happen & Fraud Triangle &Fraud diamond
g. Electronic fraud & it`s tools in time of big data
h. Using fraud prediction models
First definition of fraud
fraud is defined as intentional misstatement of financial statements.
Purposedly Performed by employees, management or others to achieve illegal
personal benefit whether in traditional accounting environment or electronic
accounting environment.
Second: Difference between fraud and errors
Although both of them results in misstatements but they are totally different where:
Fraud Errors
Intention Intentional misstatement Unintentional
misstatement
Parties By Employees, Management or By Employees
involved other internal parties
Concealment Employees perpetrating the fraud employees making errors
plans attempt to conceal the fraud do not attempt to conceal
the error
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جميع الحقوق محفوظة ـ الإعتداء على حق المؤلف بالنسخ أو الطباعة يعرض فاعله للمسائلة القانونية