DESCRIPTION
Fraud has always been part of the audit risk landscape, but AI and automation are reshaping how schemes are initiated, executed, and concealed. This module grounds participants in the definition of fraud in the context of a financial statement audit and the types of fraud most relevant to their work, then examines how emerging technology is expanding the fraud risk landscape in ways that demand heightened awareness and sharper professional skepticism. Participants map required fraud risk procedures within DAS, building both the technical knowledge and the workflow fluency to assess and respond to fraud risk on their own engagements. Real-life examples and AI-specific fraud scenarios bring the concepts to life and leave participants better equipped to recognize what fraud risk looks like in practice.
LEARNING OBJECTIVES
- Define fraud in the context of a financial statement audit and identify types of fraud relevant to financial statement audits
- Explain how the use of AI and automation affects fraud risk, including ways fraud schemes may be initiated or concealed
- List the required procedures to address the risk of material misstatement due to fraud and how each required procedure is addressed in DAS
- Demonstrate heightened awareness of potential fraud risks by understanding real-life examples of fraud and emerging AI-related risks
