• We are living in an age of explosive new technology and abundant data. This has helped businesses around the globe grow and prosper in new and exciting ways. But it has also provided fertile ground for something that has been around for nearly as long as currency itself: “financial fraud”. Common Types of Fraud as follows:
1. Financial fraud: Fraud can take many different forms, but some of the most common “financial fraud”.
2. Fraudulent financial statements: Concealed liabilities, fictitious revenues, or improper valuation.
3. Corruption schemes: Bribes, kickbacks, hidden interests, improper gratuities and other related activities.
4. Asset misappropriation: Theft of inventory and other assets. This tends to represent 85 to 90% of fraud cases.
• Because both the audit landscape and technology are rapidly changing, auditors must periodically take stock and re-evaluate how they do their work. The sheer volume of data and transactions today is massive, so auditors must find the most effective ways of navigating through the data to find anomalies. This can be challenging in a field that is sometimes criticized for its perceived aversion to new technologies, even though traditional approaches and spreadsheet-based tools are insufficient for comprehensive fraud investigations.