Identifying Audit Risks - Behavioral and Management Cues ON DEMAND

Overview

This course focuses on behavioral cues and management-related red flags that auditors should be aware of. It highlights changes in employee or management behavior that might indicate potential fraud or unethical conduct. This course also examines risks associated with management estimates and representations, particularly in areas like fair value measurements and impairment testing. Auditors will learn how to assess these red flags and determine when further investigation is needed to prevent or detect fraudulent activities.

Highlights

Identifying audit risks - behavioral and management cues. Behavioral cues in fraud detection. Key indicators of stress or unusual behavior. Behavioral warning signs in employees and management. Using interviews and observation to identify behavioral red flags. Building relationships to encourage transparency. Management representations and estimates. Common red flags in management estimates. Identifying potential biases in management’s assumptions. Techniques for auditors to challenge management’s assumptions.

Prerequisites

None.

Designed For

Auditors, CPAs, and other accounting professionals.

Objectives

Recognize behavioral red flags that may indicate fraudulent or unethical conduct. Identify management-related risks in estimates and representations that could affect audit outcomes. Determine when changes in management behavior require further investigation.

Preparation

None.

Notice

None.