This course reminds governmental auditors of their important responsibilities related to fraud and the evolving risks they may encounter in today’s audit environment. Through interactive discussions and practical activities, participants will examine an auditor’s responsibility for addressing fraud risks and explore how emerging technologies, including artificial intelligence, are changing the way fraud may be initiated, concealed, and detected.

Using findings from the Report to the Nations, published by the Association of Certified Fraud Examiners, the course defines occupational fraud and examines recent fraud-related trends, including the growing role of artificial intelligence in fraud schemes. Participants will explore traditional and AI-enhanced methods used by fraudsters and learn to recognize key warning signs, including indicators of potentially falsified documentation.

Through a Kahoot activity, case study, and real-world fraud examples from governmental environments, participants will apply these concepts to government audits. They will assess fraud risks, consider factors unique to governmental entities, and examine audit procedures used to respond to the risk of material misstatement due to fraud, including inquiries and journal entry testing.

The course also explores how AI and automation can affect fraud risk and the auditor’s risk assessment. Participants will consider how emerging AI-related risks may influence their audit approach and how government auditors can incorporate appropriate fraud-risk considerations and responses into their engagements.