Analyze the motives and opportunities of fraud
Rational people are more willing to respect objective facts, but once faced with some pressure and temptation, the impulse of customers to cheat will become strong. CPA's analysis of fraud motivation is helpful to reduce audit risk.
Attach importance to the application of analytical programs.
Analysis program is a very effective audit method, which helps to find major errors. By analyzing the proportion and trend of inventory and sales revenue, total assets, transportation costs and other items, tracing those abnormal items is likely to reveal major fraud.
Correct application of the principle of materiality
The principle of materiality is an important principle in audit work, and certified public accountants must pay special attention to the items that occupy an important proportion in the balance sheet. Inventory should be an extremely important project, and certified public accountants should design special spot checks or detailed investigation procedures for deposit and issuance, instead of simply taking the routine inspection procedures of notifying a few months in advance and sampling a small amount, so as to give cheaters an opportunity.
Full-time training for certified public accountants
The fraud level of audit clients is constantly improving, and simple methods can no longer meet the current needs. In order to be competent for professional work, certified public accountants must constantly improve their ability to investigate and deal with fraud. Professional institutions should provide off-the-job training for certified public accountants to improve their ability to detect asset fraud.