Fraud Risk Assessment in Audit Planning in Internal Supervision Units: Case Study of Transportation Companies

Fraud Risk Assessment (FRA) is claimed to be an important activity at the audit planning stage in both the private and public sectors. In fact, because of the importance of FRA activities, Auditing Standards (SAS 99, ISA 240, ISSAI 1240) have required auditors to carry out FRAs at the audit planning stage. FRA is considered as the core activity of financial audit planning because of the impact of fraud on the sustainability of an entity, quality of life, and economic growth. This study aimed to determine the practice of FRA in public sector audits and to find out more about the obstacles faced by auditors during the audit process and to find out the causes of these obstacles by considering the approach to the Audit Standards used. This study found that auditors’ performance can be determined based on their complete compliance with audit standards. We have encountered a serious problem that requires firm action from the government or a competent official, namely the auditor’s willingness in preparing the Fraud Risk Assessment Matrix. In addition, we recommend the Audit Standards Board to adopt international public sector auditing standards and disseminate them through training for auditors, students, and professionals. Keywords: fraud risk assessment, public sector audit, auditor competency

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The Implementation of Fraud Risk Assessment in Anticipating Fraud in the Goods Purchasing Cycle Case Study on Small and Medium Enterprise: PT X

Proceedings of the Asia Pacific Business and Economics Conference (APBEC 2018) ◽

10.2991/apbec-18.2019.23 ◽

2019 ◽

Author(s):

Mega Silvia Fahriani ◽

Agustinus Nicholas Tobing

Keyword(s):

Risk Assessment ◽

Fraud Risk ◽

Small And Medium Enterprise ◽

Medium Enterprise

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Different Approaches to Fraud Risk Assessment and Their Implications on Audit Planning

Periodica Polytechnica Social and Management Sciences ◽

10.3311/ppso.8436 ◽

2016 ◽

Vol 24 (2) ◽

pp. 102-112

Author(s):

Judit Fortvingler ◽

◽

László Szívós ◽

◽

Keyword(s):

Risk Assessment ◽

Audit Planning ◽

Fraud Risk

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An Overview of Risk-Based EEE Counterfeit Part Detection Based on SAE AS6171

10.31399/asm.cp.istfa2018p0051 ◽

2018 ◽

Author(s):

Michael H. Azarian

Keyword(s):

Risk Assessment ◽

Multiple Solutions ◽

Test Equipment ◽

Assessment Methodology ◽

Test Plan ◽

Specific Test ◽

Risk Assessment Methodology

Abstract As counterfeiting techniques and processes grow in sophistication, the methods needed to detect these parts must keep pace. This has the unfortunate effect of raising the costs associated with managing this risk. In order to ensure that the resources devoted to counterfeit detection are commensurate with the potential effects and likelihood of counterfeit part usage in a particular application, a risk based methodology has been adopted for testing of electrical, electronic, and electromechanical (EEE) parts by the SAE AS6171 set of standards. This paper provides an overview of the risk assessment methodology employed within AS6171 to determine the testing that should be utilized to manage the risk associated with the use of a part. A scenario is constructed as a case study to illustrate how multiple solutions exist to address the risk for a particular situation, and the choice of any specific test plan can be made on the basis of practical considerations, such as cost, time, or the availability of particular test equipment.

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