Identifying Audit Risks - Behavioral and Management Cues
Author: Kelen Camehl
| CPE Credit: |
1 hour for CPAs |
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.
Publication Date: March 2025
Topics Covered
- Behavioral Cues in Fraud Detection
- Key Indicators of Stress or Unusual Behavior
- Behaviorial 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 Mangements Estimates
- Identifying Potential Biases in Managment's Assumptions
- Techniques for Auditors to Challenge Managemetn's Assumptions
Learning 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
Level
Overview
Instructional Method
Self-Study
NASBA Field of Study
Auditing (1 hour)
Program Prerequisites
None
Advance Preparation
None
