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.
Learning Objectives
Upon successful completion of this course, participants will be able to:
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
Major Topics
- 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
