Occupational fraud is a problem, which has always been discussed, and especially after some of the bigger scandals with e.g. Enron, Nordisk Fjer and IT Factory. The focus is often directed towards the accountants and why they as professionals didn’t discover the fraud. In this thesis the wish is to examine how accountants in practice assess the risk of fraud as a result of accounting manipulation. The thesis has examined how accountants assess the risk of fraud in general and how they use ISA 240 when making the assessment. The elements of standard, which have been used in the thesis, have been selected based on what is considered to be most relevant for the thesis statement. A qualitative method has been used to examine the thesis statement. The method consists of interviews with six people, who work with accounting, whose answers have been used to compare with ISA 240 and theory. Apart from the above-mentioned qualitative method, the fraud triangle and other models have been used throughout the thesis. The professional skepticism, discussion among the engagement team, knowledge of the client, the clients’ environment, the internal controls and the use of analytical procedures are the elements of ISA 240 the thesis examined. Big data and data analysis are included in the thesis because of the big focus there has been on the topic. Based on the analysis of the interviews there are some trends to be found from the answers. The respondents tell that especially the professional skepticism, the knowledge about the client, the clients’ environment and the internal controls are where they primarily make the assessment about the risk of fraud. From the thesis it can be concluded that accountants use different approaches to assess the risk of fraud, but it is mainly in the planning stage where the assessments take place.
|Educations||MSc in Auditing, (Graduate Programme) Final Thesis|
|Number of pages||108|
|Supervisors||Kim Klarskov Jeppesen|