Fraud Audit and Investigation Define

Fraud Audit and Investigation

Define the Scope of the Audit and the Desired Outcomes

The scope of the Torpus audit is to examine the entire balance sheet and net worth of the company. Where, you will look at every aspect of the financials and physical operation. The idea is to identify any kind of issues that could have an impact upon the company receiving the loan. This is important, because it will help to show the bank that Torpus has: an economically viable business plan and that they are a good credit risk. When you put these different elements together, it will provide the loan officer with enough information to objectively analyze the business. (Siegle, 2008) (Beasley, 2008)

The desired outcomes of the Torpus audit are: to address any kind of transparency issues and identify areas that could have an impact upon the profitability of the company. Once this takes place, it will provide executives at the bank with a total overall big picture view of the underlying financial strength of the organization. (Siegle, 2008) (Beasley, 2008)

Identify and explain at Least Three Types of Information to be audited

The three different types of information that will be audited include: the accounts payable, the accounts receivable and the balance sheet. The accounts payable is the total amount that the company owes to: suppliers, employees and creditors. The accounts receivable is the total amount of that Torpus is receiving from its customers. These different pieces of information are complied and reported to: officers, directors as well as shareholders of the company in the form of the balance sheet. This is a consolidated summary of the total expenses and profits that were received over a period of time. All these various types of information are important, because they will tell auditors and the bank the underlying financial strength of the company. At which point, they can make an accurate assessment, as to if loaning Torpus the funds they require is financially prudent. (Siegle, 2008) (Beasley, 2008)

Discuss how the Interviews will be conducted, Evidence collected and Non-Verbal cues evaluated during the Interviews

The different interviews will be conducted individually. During this process you would want to collect any kind of financial information that will be relevant for the completing the audit. Once this takes place, you would want to establish a follow up interview with key personnel in the company. The idea is compare and analyze what you are being told by executives with actual documentation. Where, you would look for inconsistencies when comparing what the person is saying with: various financial numbers and then using common sense. At which point, you would ask them a series of questions and pay attention to changes in their body language and the way they are talking (to determine any kind of inconsistencies through non-verbal cues). (Siegle, 2008) (Beasley, 2008)

Discuss how the Audit Evidence will be evaluated and Conclusion Drawn